Comment: Navigating capital calls

by Alice Murray 24 August 2020

GPs anticipating liquidity heat amongst LPs should review their LP agreements and plan ahead, write Lydia Danon, partner, and Shelley Drenth, associate, at law firm Cooke, Young and Keidan.

As the economic fall-out from Covid-19 continues, private equity firms are forced to consider carefully their funding sources, including unforeseen capital calls to existing LPs. In the current environment, many investors are battening down the hatches, hesitant to commit any further capital and may even attempt to redeem existing investments.

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