A fund combination can provide many benefits for GPs. Law firm Lowenstein Sandler outlines the key factors managers should consider when thinking about executing one.

Private fund managers may decide to combine and consolidate existing fund structures for a variety of reasons, including, but not limited to, strategic, operational and financial.

Consolidation may result in fewer audits, lower trading and other transaction costs, simplified investor reporting and streamlined counterparty relationships. It may also be driven by tax or regulatory considerations, including the dissolution of offshore feeder funds or parallel funds if such structures are no longer deemed necessary or desirable.

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