4 ms·

Can you elaborate how big the effective political risk is? I always thought LP commitments are pretty binding - are there many ways out of the fund for Saudi/Em

Can you elaborate how big the effective political risk is? I always thought LP commitments are pretty binding - are there many ways out of the fund for Saudi/Emirati money that aren't available to other very big fish?

JumpCrisscross 9y ago
> Can you elaborate how big the effective political risk is? I always thought LP commitments are pretty binding The risk isn’t the Saudis pull out. It’s that their investment brings adverse attention from the President, the Congress, aspiring Senators and advocacy groups. A foreign state investor is scarier to most Americans than a foreign private entity.
HaloZero 9y ago
I'm not sure what happens in the case where say sanctions against Iran or Saudi Arabia could freeze assets as well.
- jopsen 9y ago
  Wouldn't the sanctioned investors in the fund just be unable withdraw their money?
  - JumpCrisscross 9y ago
    Yes. Though now I'm curious if a fund manager is allowed to continue collecting their management fee from the sanctioned investors' funds...