When is bringing in an investor the right strategic move for a private capital manager?

In this episode of Alternative Insight, Aztec Group’s Andrew Tully is joined by Tom French, Partner at Macfarlanes, to explore the growing market for GP stakes and manager consolidation.

Done well, a control sale or minority GP stakes investment can unlock growth capital, smooth the path to succession and deliver a meaningful liquidity event for founders. But the right deal is about more than price. Get it wrong, and it can reshape a firm’s culture, governance, incentives and long-term identity.

During the discussion, they cover:

• What’s driving GP consolidation, and when a control sale or minority GP stakes investment might make sense
• How to best protect the economics of management fees and carried interest for all parties and what to consider
• Growth, liquidity and succession, including how managers can use investment to support their longer-term strategic objectives
• Protecting the partnership, from governance and incentives to confidentiality, team retention and long-term alignment

Listen to the Alternative Insight podcast episode:

Listen to “GP stakes: When to sell, when to partner and what to protect” on Spreaker.

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