“The Time Is Now For Private Equity Spin Outs” by Isobel Markham of Private Equity International (PEI) featuring Eric Zoller

Excerpts Below:

The alignment (for spinouts) comes from the realisation on both the LPs’ and the GPs’ part that this first fund as a new outfit is make or break. First-time teams need to lay down a meaningful amount of their own capital to prove to the market that they’re all in.

Eric Zoller, partner and co-founder at US-based placement agent Sixpoint Partners, pinpoints three drivers for spin-outs: the rise of recapitalisations; aging founders in firms “where the next generation of partners don’t feel like they have a seat at the table”; and firms pushing into a multi-strategy approach, which can leave one vertical feeling orphaned.

“The spin-outs of today are very different from the traditional emerging manager profile of [the] recent past in that they have established, overlapping investment teams with attributable track records and they’re deploying capital into proven strategies: the LPs can check boxes with them,” Zoller says.

The full article can be viewed on Private Equity International’s Website: PEI

Sixpoint Partners, LLC, is a registered broker/dealer, member FINRA (http://www.finra.org) and SIPC (http://www.sipc.org).