With pressure to show growth in operations, investments or asset classes, private market firms are looking to M&A transactions for financial support, according to The Drawdown. Haynes Boone Partner Albert Tan spoke with the publication about the financing options available to these organizations.
Read an excerpt below:
“To really grow your AUM, do not think incurring debt at the GP level is a viable solution, unless you are looking to use the debt to acquire AUM in other private capital asset classes and consolidate in some way or another,” says Albert Tan, partner and co-head of the fund finance practice group at Haynes Boone.
“Especially in a challenging fundraising and consolidating environment, GPs may want to position themselves beneficially towards potential LPs by broadening their offering of asset classes and strategic platforms.”
