GP Stakes and Foreign Investors: Between Attractiveness and Constraints (Capital Finance)

In their recent Capital Finance article, Goodwin’s Sarah Michel and Thomas Dupont-Sentilles explain that the general partner (GP) stakes market — long the preserve of US players — is accelerating spectacularly in Europe, particularly in France. These operations, through which specialized funds (GP stakers) take minority stakes in management companies (GPs), have emerged as a strategic response to certain issues specific to management companies: financing their growth, diversifying strategies, accelerating internationalization, or strengthening equity to meet the growing requirement of limited partnerships in terms of GP commitment; facilitating the transfer of capital and management, a major challenge for an industry facing a growing generational renewal within management teams; and providing investors with access to recurring revenue streams, via management fees and carried interest.

Read the full analysis: “GP Stakes and Foreign Investors: Between Attractiveness and Constraints” (Capital Finance)  

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