Sun Capital Offers To Cut Fund Size
We first reported in August that Sun Capital Partners investors were pushing for a fund size cut, and now the Boca Raton-based firm has acceded. In a letter dated yesterday (and obtained by peHUB), Sun is offering to reduce its $6 billion fifth fund by $1 billion, or down to $5 billion. If not all LPs cut their stakes by 16.7% -- such as Sun employees who might consider personal reductions to be bad form -- then other LPs can reduce by up to around 33 percent. Sun is keeping its 2% management fee intact, and there is no mention of altering the structure whereby the management fee is rolled over into the GP contribution (a bizarre structure that leaves
16 October 2009•1 min read
