Private Equity Law Report Profiles Terence Rozier-Byrd

Akin Gump investment management partner Terence Rozier-Byrd has been profiled by Private Equity Law Report following his move to the firm last month. Rozier‑Byrd shared his thoughts on his practice, which focuses on institutional investor representation; fund formation, with a focus on growth equity and private equity (PE) funds; and secondaries.

Rozier-Byrd began by noting that each investor, regardless of whether it’s a public pension plan, sovereign wealth fund, endowment or family office, has its own particular concerns and considerations, so he tries to share that perspective when advising clients. Sponsors, he said, appreciate his ability to “inform them of the state of the market.” When representing investors, he pointed out, it is helpful to understand the sensitive points for fund sponsors and be able to provide reasoned explanations for anticipated pushback.

Rozier-Byrd noted that private equity sponsors looking to diversify their offerings outside of mature businesses have recently been looking at investments in companies that have passed the startup stage but have not reached complete maturity. They’ve sought to do this, he said, by raising growth equity funds, which straddle the venture capital and PE worlds.

“The strategy involves making non-control investments in fast-growing businesses,” Rozier‑Byrd said. “Historical data demonstrates that growth equity investments can achieve returns similar to VC with less risk, and exits have recently been occurring after relatively short holding periods.”

Addressing the secondary market, another way in which PE sponsors are increasing their exposure to private companies in the growth stage, Rozier-Byrd stated that it provides “a means through which growth equity funds can obtain access to late-stage private companies. If a company is not actively raising capital, secondary transactions with early investors or insiders provide opportunities for a growth equity fund to acquire an interest in the company.” He added that he expects to see a great deal of activity in the secondary market, which he said is “an invaluable tool for both fund sponsors and LPs to manage liquidity.”