"Top 10 considerations in private funds tender offer deals," an article by Akin Gump investment management partner Fadi Samman, senior counsel Krishna Skandakumar and counsel Amanda Butler-Jones, has been published by Reuters.
The article notes that GP-led secondary transactions, that is, those initiated by a general partner (GP) or fund sponsor, are, typically, launched to create liquidity for existing limited partners (LPs) of a fund, "while allowing the GP to restructure and, in many cases, recapitalize one or more fund assets with a buyer." The authors note that, contrary to most GP-led transactions, LP tender offers "represent a GP-facilitated liquidity process that gives LPs an option to directly sell their interest to a buyer in an otherwise illiquid investment."
The authors then look at the titular 10 considerations, such as key documents and process, U.S. tender offer rules, and tax structuring.
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