Thiha Tun Quoted in Financial News on Changing Demands for Private Equity Fundraisings
Thiha Tun, a partner in Akin Gump’s investment management practice, has been quoted in the Financial News article “Complex demands raise status of funds lawyers,” which reports on the growing frequency and complexity of private equity fundraisings.
According to the article, the average PE fundraising in Europe has risen from $519 million in 2014 to $569 million this year. In 2010, the total was $285 million.
The article notes that the capital-raising process has changed with many institutional investors seeking greater control of, and value from, their investment portfolios. In response, Tun said, “Some large sovereign wealth funds and pension funds have scaled back or largely stopped making traditional fund investments and moved towards investment platforms and other bespoke investment solutions where they make large commitments, often with a handful of other like-minded investors, and seek significant deals, particularly in real assets.”
In many instances, the article says, funds are working on shorter timeframes where capital can be put to work immediately. Tun believes this has put additional pressure on private funds lawyers to be more agile and adept at dealing with a fast-moving environment. “The turnaround can be very quick,” he said. “In January this year, we took four weeks to document a deal with just three investors, which included the manager putting their own money in. It was an opportunistic reaction to the fall in the oil price and the recognition that there were some distressed oil assets out there. They were not interested in spending a year and a half raising $1 billion, as they might have then missed the boat.”