PE lessons

7 September 2010 By Alexander Smith

BC Partners has offered a fee cut to lure investors to a new 6 bln euro fund. The private equity group’s seemingly small concession has big symbolic significance. In Europe at least, buyout firms can no longer dictate terms. Others will have to follow and possibly go further.

This content is for Subscribers only

Context News

European private equity firm BC Partners has offered investors who sign up for its new 6 billion euro fund before its first closing date a 5 percent discount on fees. Full management fees are 1.5 percent and carried interest 20 percent. BC has also told prospective limited partners that they will receive all transaction fees generated within its Fund IX, rather than the previous 80 percent cut due to them under BC's previous fund. The initial close of the European fund is expected before the end of 2010, with a final close by the end of next year.

Email a friend

Please complete the form below.

Required fields *