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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Banking and Finance

Date & Time
  • event Date

    Tuesday, October 31, 2023

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.


  • Live Online


    On Demand

$347.00

This course is $0 with these passes:

CLE
ALL

This CLE course will discuss features of pledge funds and the pros and cons of these industry funds compared to blind pool funds or the separately managed account model. The program will also address where the pledge fund fits in the current regulatory landscape.

Faculty

Phyllis A. Schwartz
Partner
Schulte Roth & Zabel LLP

Ms. Schwartz focuses her practice on the structuring, formation and operation of private equity funds, including buyout funds, venture capital funds, mezzanine funds, distressed funds and real estate funds. She represents both fund sponsors and investors in her practice. In addition to assisting fund sponsors with their internal management arrangements, succession planning and the creation of internal investment and co-investment vehicles, she has extensive experience with institutional investors and regularly advises clients on market terms of investment funds. She also advises private equity funds in connection with their investments in, and disposition of, portfolio companies and the establishment of capital call credit lines.

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Description

Specialization is changing the private equity market as industry-focused strategies increase in popularity. In recent years, the alternative asset market has paid increasing attention to fundraising alternatives, including a revival of interest in "pledge fund" structures.

As the fundraising market tightens and investors increase their interest in "direct" investments, fund sponsors have turned to pledge funds. These funds can present an attractive midpoint between the direct investment model and a fully committed blind pool and enable sponsors to have some certainty in funding their deals.

Similarly, investors that have moved away from the blind pool in favor of a more directed strategy can find the pledge model very attractive. Pledge funds allow investors to retain discretion over their investment decisions by opting in or out on a deal-by-deal basis.

Listen as our authoritative panel of practitioners discusses the benefits and pitfalls of private equity pledge funds and how they contrast with blind pool funds or the separately managed account model. The panel discussion will also include regulatory concerns associated with pledge funds.

Outline

  1. Background and structure
  2. Terms and conditions
    1. Management fees
    2. Carried interest
  3. Pledge fund operations: timing and investment process
  4. Structuring pledge funds under the Investment Advisers Act

Benefits

The panel will review these and other vital questions:

  • What market factors have caused investors to look more closely at more direct investments?
  • What advantages do pledge funds present for investors?
  • How are sponsor management fees and carried interest structured for pledge funds?
  • How are pledge funds structured under the Investment Advisers Act?