Brian Forman Quoted in Buyouts on Fund Extensions in Today’s Tougher Fundraising Environment

Partner Brian Forman was quoted in a Buyouts article entitled “Apollo Cuts Fees on Fund Extension After LP Pushback.” The article pointed to Apollo Global Management, which cut fees on an extension for its 2013 flagship private equity fund after pushback from the fund's investor advisory committee, as an example of LPs being more assertive in disputing terms in today’s tougher fundraising environment.

Brian, who chairs Morrison Cohen’s Investment Funds & Advisers Practice, commented on market arrangements for such extension requests. “It’s hard to say what is market – somewhere between a one-year and two-year automatic or GP discretionary extension is somewhat normal,” he said. “You might see any sort of combination of a GP discretionary-plus advisory committee approval, you might see one-year automatic extension at the GP discretion plus another year with advisory committee consent.”

Buyouts subscribers may read the full article here.