NEWS & INSIGHTS


Peter Martenson featured in Private Equity Analyst article “First-Time Funds Gain Ground, But Many LPs Want It Their Way” by Laura Kreutzer

“At Christmastime, my kids don’t need presents, but they expect Santa to show up, whether or not they need them,” said Peter Martenson, a partner at Eaton Partners, which frequently places first-time funds, including Turnbridge Capital Partners I LP, a $400 million vehicle that closed last year. “That’s how LPs are. They expect it. For a while, it was not as common, and now it’s common and expected.”

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Mr. Martenson, of Eaton Partners, added that when helping to market a first-time fund, his firm will sometimes provide prospective investors with an income statement that roughly outlines a firm’s expenses so investors can see where a fund’s fee revenue will go. “It’s expensive to run these firms, so there’s not always a lot of fat to give up,” he said. “We try to minimize how much flesh is given for cornerstone closes, because people don’t realize how expensive it is to run those businesses.”

 

The full piece can be found at: PE Analyst

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