Friday Letter Wisconsin’s stance

Which investors deserve ‘LP of the year’ status?

“I can’t believe you aren’t getting behind Wisconsin!” cajoled a member of our global editorial team during a recent meeting. We were in the midst of a long and lively debate as to which US limited partners truly stood out in 2012 and merit a place on the shortlists for our annual PEI Awards (voting kicks off next week, so do start thinking about who deserves top honours).

The colleague argued that the worst kind of LPs were those who complain about various industry issues but don’t do anything about them. Thus whether or not you agree with Wisconsin’s declaration earlier this year that mega-funds have misaligned interests, they deserve credit for sticking to their principles and subsequently putting $1 billion-worth of mega-fund exposure up for sale.

“Yes, but…” came the voices of several other colleagues all at once, each of whom went on to passionately champion equally compelling contenders.

Find out next week whether Wisconsin made the cut – you’ll have the chance to vote on this and nearly 70 other categories across the Americas, EMEA and Asia-Pacific regions in the industry’s most comprehensive set of global private equity awards. And if you don't agree with our shortlists, you'll have the option to write in candidates you feel deserve recognition.

As you begin to think about which LPs (and other private equity professionals and advisors) were best in breed over the past 12 months, we’ll leave you with an item we first dreamed up post-GFC – the LP Christmas carol – as investors' quest for better terms intensified.

If an LP sang a private equity-themed carol to the tune of 'The 12 Days of Christmas', it (still) might go something like this…

 

On the first day of Christmas

My GP gave to me

A much lower management fee!

 

On the second day of Christmas

My GP gave to me

Two carry points

And a much lower management fee!

 

On the third day of Christmas

My GP gave to me

Three new deals

Two carry points

And a much lower management fee! 

 

On the fourth day of Christmas

My GP gave to me

Four co-invests

Three new deals

Two carry points

And a much lower management fee! 

 

On the fifth day of Christmas

My GP gave to me

Five new key men

Four co-invests

Three new deals

Two carry points

And a much lower management fee!

 

On the sixth day of Christmas

My GP gave to me

Six ESG feats

Five new key men

Four co-invests

Three new deals

Two carry points

And a much lower management fee! 

 

On the seventh day of Christmas

My GP gave to me

Seven marks-a-leapin’

Six ESG feats

Five new key men

Four co-invests

Three new deals

Two carry points

And a much lower management fee!

 

On the eighth day of Christmas

My GP gave to me

Eight ad hoc updates

Seven marks-a-leapin’

Six ESG feats

Five new key men

Four co-invests

Three new deals

Two carry points

And a much lower management fee! 

 

On the ninth day of Christmas

My GP gave to me

Nine parcels passing

Eight ad hoc updates

Seven marks-a-leapin’

Six ESG feats

Five new key men

Four co-invests

Three new deals

Two carry points

And a much lower management fee!

 

On the tenth day of Christmas

My GP gave to me

Ten juicy ratchets

Nine parcels passing

Eight ad hoc updates

Seven marks-a-leapin’

Six ESG feats

Five new key men

Four co-invests

Three new deals

Two carry points

And a much lower management fee!

 

On the eleventh day of Christmas

My GP gave to me

Eleven prudent recaps

Ten juicy ratchets

Nine parcels passing

Eight ad hoc updates

Seven marks-a-leapin’

Six ESG feats

Five new key men

Four co-invests

Three new deals

Two carry points

And a much lower management fee!

 

On the twelfth day of Christmas

My GP gave to me

Twelve distributions

Eleven prudent recaps

Ten juicy ratchets

Nine parcels passing

Eight ad hoc updates

Seven marks-a-leapin’

Six ESG feats

Five new key men

Four co-invests

Three new deals

Two carry points

And a much lower management fee!