INSTITUTIONAL INVESTOR SENTIMENT SURVEy - PEI Media
INSTITUTIONAL INVESTOR SENTIMENT SURVEy - PEI Media
INSTITUTIONAL INVESTOR SENTIMENT SURVEy - PEI Media
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foreword<br />
Understanding how institutional investors operate and think is crucial for fund managers<br />
to thrive in this harsh fundraising environment. GPs must realise that their relationships<br />
with LPs should go far beyond just a traditional alignment of interests. Today’s LP-GP<br />
relationship has become a more equitable partnership where GPs increasingly accommodate<br />
LPs’ concerns and demands in their fund structures.<br />
It is no longer enough for a GP to promise high returns to investors. Issues such as<br />
management fees, carried interest, “zombie funds” and communication are now standard<br />
talking points for LPs during the negotiation process. While some strides to clarify LP<br />
terms have been made by organisations such as the Institutional Limited Partners Association,<br />
many GPs continue to mistake the needs of LPs as one-off requests rather than<br />
a fundamental shift in the LP-GP relationship.<br />
The need to understand LPs and react to their requirements has never been more<br />
important. Therefore, the Research Unit at Private Equity International has undertaken<br />
an Institutional Investor Sentiment Survey in order to gauge the opinions of prominent players<br />
in private equity markets. With topics ranging from fees to the LP-GP relationship,<br />
current allocations to future appetite, the survey aims to present a concise and detailed<br />
analysis of today’s global LP.<br />
This report is an essential reading for fund managers – whether they are launching<br />
their first fund or are seasoned professionals – advisory firms and the institutional<br />
investors themselves. Our extensive survey not only sheds light on how LPs believe the<br />
alternative asset class is evolving but also places the findings in the context of today’s<br />
private equity markets.<br />
I hope you find our Institutional Investor Sentiment Survey both an informative and<br />
interesting read.<br />
Larry Oberfeld<br />
Senior Analyst<br />
Private Equity International<br />
institutional<br />
investor<br />
sentiment<br />
survey<br />
• foreword<br />
executive summary<br />
allocation<br />
fees<br />
lp – gp relationship<br />
future investments<br />
and concerns<br />
appendix: global<br />
fundraising<br />
Institutional Investor<br />
Sentiment Survey<br />
Director of Data Products<br />
Dan Gunner<br />
Tel: +44 20 7566 5423<br />
dan.g@peimedia.com<br />
contents<br />
01 Foreword<br />
03 Executive Summary<br />
06 Allocation<br />
11 Fees<br />
21 LP-GP relationship<br />
29 Future Investments and<br />
Concerns<br />
37 Appendix: Global<br />
Fundraising<br />
Contributors<br />
Thelma Azolukwam<br />
Sacha Batica<br />
Madeeha Chaudhry<br />
Vincent Law<br />
Sales<br />
Joss Onion<br />
Tel: +44 20 7566 4283<br />
joss.o@peimedia.com<br />
Sean Bookstaver<br />
Tel: +1 212 633 1075<br />
sean.b@peimedia.com<br />
Senior Analyst<br />
Larry Oberfeld<br />
Tel: +44 20 7566 5467<br />
larry.o@peimedia.com<br />
Head of Production<br />
Tian Mullarkey<br />
Tel: +44 20 7566 5436<br />
tian.m@peimedia.com<br />
Production and Design Manager<br />
Miriam Vysna<br />
Tel: +44 20 7566 5433<br />
miriam.v@peimedia.com<br />
page 1<br />
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