Trey Muldrow Quoted in Buyouts on Fundless Sponsor Deals
Trey Muldrow, a partner in the corporate practice at Akin Gump, has been quoted in the Buyouts article “Fundless sponsors find success in tough deal-making environment.” The article addresses the issue of private equity firms that don’t have their own funds, yet still do buyouts.
According to the article, many buyout firms operating without funds are playing a more prominent role in finding deals. Muldrow, who has worked with fundless sponsors, said the financial structure of fundless sponsor deals varies. In some cases, a mini fund is created to do a single deal, with one or more general partners or limited partners or family investment groups providing capital. An arrangement like this, he said, may support a management fee and carried interest payments, usually below the standard 2 percent and 20 percent, respectively. “It all depends on the deal, and it’s highly negotiated,” he added.