To appeal to investors and exploit investment opportunities, fund managers will often operate multiple funds at once that may even span asset classes. That practice introduces the possibility that those funds will begin accessing common resources as part of their efforts, including sharing investors, exploring opportunities in similar industries and leveraging the expertise of the same group of employees at the firm. In anticipation of that problem, sponsors need to develop sound policies and procedures for addressing those instances and properly allocating the contested items between their PE and private credit funds. In this article, partners Stephanie Breslow and Daniel Hunter discuss how fund managers can best steer clear of issues and risks while managing both PE and private credit funds.
Read part one “Simultaneous Management of PE and Private Credit Funds: Use of Walls and Other Tactics to Manage MNPI Risks” here.