Blayne Grady and Joshua Williams Discuss Hybrid Structures in Wells Fargo Publication
Wells Fargo Prime Services’ Industry and Regulatory Updates has featured Akin Gump investment management partner Blayne Grady and tax partner Joshua Williams in the Q&A article “Trends in Hybrid Structures.” Among other things, the two discuss why investors should choose hybrid products, structural considerations for managers and whether hybrid structures have staying power.
As for why hybrid products should be sought rather than investing in a private equity firm, Grady and Williams say that hybrid elements “are often viewed positively by the investor community as responsive to LP needs, and can facilitate fundraising success.” Structural considerations for managers include those that “revolve around the expected hold period or maturity/duration of the portfolio – considerations like how investor liquidity (if any) could be managed and how long would a manager need to wait in order to receive incentive compensation from the portfolio.”
Grady and Williams predict that hybrid structures will “become common in a growing number of asset classes and develop over time such that the lines between traditional closed-end and open-end structure become fairly blurred.”
To read the entire issue with the Grady and Williams Q&A, please click here.