Tussle over terms


A slide in performance is giving investors more clout with managers over terms on gates, lockups, side pockets and fees. It’s now a buyer’s market – at least for some.

As performance slides, investors are gaining ground on gates, side pockets, lockups and fees

By Britt Erica Tunick

When emerging market investor John Moon left Oaktree Capital Management to go out on his own in April 2005, the price of getting in on his new fund's action was pretty onerous: Investors had to keep their money locked up for three years. Moon Capital's requirement wasn't uncommon at the time. The threat of mandatory registration with the Securities and Exchange Commission led many funds to take advantage of a loophole exempting those