Keynote Address - PEI Media

Short Term Changes in the Developed
Private Equity World
5
6. New funds will be smaller ― back to pre 2004 sizes ― with
terms much more favorable to lp's on fees, preferred
returns, and investment period lengths. As a result, some
firms will shrink their staffs and areas of focus
7. Focus of much of PE activity will be on maintaining existing
holdings’ viability if not value; re-purchasing debt will be a
principal activity for gp's
8. Some of the most visible transactions from 2005-8 8 will have
to be restructured dramatically
9. Investors will seek to reduce their private equity exposure
― fewer new commitments and reducing existing
commitments
10. Government will likely increase oversight and taxation of
private equity activity
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