Market stress: Issues for private funds

The coronavirus pandemic has had a substantial impact on global markets. Whilst many of the issues arising from the pandemic are not unique to the asset management industry, we have taken a closer look at a sample of these, from strategic and commercial issues to legal and procedural ones, that we think are worth considering by asset managers for private funds at this time.

Overview

Financial turmoil manifests itself in a host of ways, which will vary from fund to fund. However, above all, the relationship between LPs and GPs is being tested. It will be challenging to continue on a 'business as usual' basis, as normal arrangements evolve (at speed) with market conditions. This means asset managers need to manage their relationships with their investors more than ever.