The Texas Lawbook Features Akin Gump Funds Lawyers in Q&A on Bridging the GP/LP Gap
Akin Gump investment management partner Jim Deeken and associate Gechi Tesic participated in The Texas Lawbook Q&A “Fund Negotiations—Bridging the GP/LP Gap.” Following a recent OnAir with Akin Gump podcast, in which they performed a mock negotiation between a private equity firm and a pension fund considering an investment in a successor fund, Deeken and Gechi talked through the advice they would give to help ensure a smooth transaction and explain why they chose the podcast format to share this information.
Deeken suggested that the podcast was beneficial for two reasons. First, it showed “how to resolve a conflict without alienating the other side by finding and framing a solution that allows their counterparty to feel like they are getting what they want, too.” Second, it underscored the importance of being a good listener if you want to be a good negotiator. There is also, as Deeken described, the art of learning how to get to “yes.” For him, that involves compromise and being able to set a tone of trust.
Tesic added that the unique nature of fund negotiations “is that the parties either have an ongoing relationship or want to have an ongoing relationship.” Because of that, she said, compromise is particularly important, along with being kind to the other side.
Other topics covered in the Q&A with The Texas Lawbook included why GP and LP negotiations are compelling, how Deeken and Tesic came up with the idea of a mock negotiation and what podcast listeners will learn from it. To that last point, Tesic said the conversation “is a good introduction for anyone who is not well-versed in funds and wants to get more of a sense of the flavor of the negotiation process and the different interests at stake.”
To listen to the original Akin Gump podcast, please click here.