Fadi Samman Speaks with FundFire Alts on Co-investments
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Akin Gump investment management partner Fadi Samman is quoted in a FundFire Alts feature article, “Managers Lift the Veil on Co-investments.”
Samman discusses the desire on the part of limited partners (LPs) for greater transparency around who is getting access to general partners’ (GPs) co-investment opportunities. He tells the publication, “Transparency is a way to incentivize the GP to be an honest broker.”
A second way in which LPs are trying to ensure they get access to the best co-investment deals, according to the article, is by requiring GPs to share any fee income or carry they earn from a third-party investor with their fund. Samman says he is seeing more of this than in the past because it “incentivizes the GP to look at the LPs first. It’s trying to align the incentive in the right way.”
Samman also talks about the control GPs maintain over who ultimately participates in their deals. With the article noting that GPs fight hard to hold on to their ability to select their investors, he says “giving everybody a right to a prorated share into a co-investment is unwieldy, impractical and unrealistic.”
