They Asked You to Do What?

John Kuhl and Amy Wells co-authored an article discussing some common issues investors should consider when evaluating a fund sponsors proposed modifications to fund terms and also what investors should ask for in return.

Executive Summary:

• Because investment capital is becoming increasingly scarce, fund sponsors may seek several changes to fund terms.
• Many of these changes may prove to be favorable to investors, but each should be reviewed on an individual basis.
• As fund sponsors seek changes to documents, LPs may find more room for negotiation.