Regency Capital Partners: The Heat Is On

A senior manager at Durable Capital Partners (DCP) must decide between two investments for the company's seventh private equity fund by evaluating each investment memoranda. The first investment calls for DCP to be a junior partner in a syndicated deal. By investing in the first company, DCP's fund would be fully invested and the company could begin to fundraise for its eighth fund. The second investment, is in DCP's ideal range in terms of size and would allow DCP to have a more diversified portfolio. In his deliberations, the fund manager must consider his company's investment approach, the current market and the appropriateness of both potential investments for the fund's current portfolio.