Speakers:Aaron Daley, Gbenga Oladeji, Luis O'Shea, Jen Choi
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To continue the conversation around the current COVID-19 crisis affecting the LP community, please join us on ILPA Connect: https://connect.ilpa.org/ilpa-trending-topics/covid-19
ILPA members have indicated a range of experiences with the pace of capital calls since the onset of the COVID-19 crisis, with mixed visibility into whether calls relate to prior deals, new opportunities in the current environment, or shifts in the use of subscription lines. Coupled with expectations for slowing distributions, LPs are revisiting their models to inform decisions about the ability to make planned or opportunistic investments over the balance of this year. Members are also in dialogue with their GPs as to the liquidity needs of existing portfolio companies and contemplating the source of that financing—be it broader recycling provisions, raising additional capital including preferred equity or exploring other creative solutions.
Join us for an interactive discussion about how LPs are navigating a number of variables in managing their liquidity and commitment pacing in these uncertain times.
Participants will have the opportunity to pose questions, share ideas and respond to polling questions around LP experiences in managing liquidity. Questions we’ll tackle include:
- What are the true drivers for any uptick in capital calls that LPs have experienced? Will this trend moderate over time?
- How are LPs modeling out the impact of COVID-19 on capital calls this year? What additional information are they requesting of GPs to more accurately project their own liquidity?
- What conversations are taking place with GPs about providing additional needed support for existing portfolio companies?
- How do LPs feel about the various approaches by GPs to managing liquidity, e.g., pre-emptive drawdowns of subscription lines or extending cleandown periods, broader recycling provisions or the raising of additional capital to support portfolio companies? What are the implications for concentration limits?