INSTITUTIONAL INVESTOR SENTIMENT SURVEy - PEI Media
INSTITUTIONAL INVESTOR SENTIMENT SURVEy - PEI Media
INSTITUTIONAL INVESTOR SENTIMENT SURVEy - PEI Media
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A vast<br />
majority of<br />
LPs conduct<br />
due diligence<br />
on the compliance<br />
operations of GPs<br />
institutional<br />
investor<br />
sentiment<br />
survey<br />
foreword<br />
executive summary<br />
allocation<br />
fees<br />
lp – gp relationship<br />
•<br />
Does your institution conduct due diligence on the<br />
compliance operations of a fund manager?<br />
future investments<br />
and concerns<br />
n<br />
n<br />
n<br />
45%<br />
43%<br />
12%<br />
Yes, extensively<br />
Yes, minimally<br />
No<br />
appendix: global<br />
fundraising<br />
Source: Private Equity International<br />
page 24<br />
The vast majority of investors conduct due diligence on the compliance operations of fund<br />
managers, whether extensively or to a minimal extent. Altogether 88 percent of LPs stated<br />
that they undertake this process with GPs versus the 12 percent of respondents who did<br />
not. There are a similar proportion of investors who recognise compliance extensively as<br />
well as those who investigate this to a minimal extent. A good compliance program includes<br />
developing policies and procedures designed to prevent violations of securities law, creating<br />
a code of ethics, maintaining records of these policies, conducting an annual review of<br />
these procedures and even appointing a Chief Compliance Officer. It is clear that regulatory<br />
developments, including the introduction of the Dodd-Frank Act in the US, have had<br />
a profound effect on private equity fund managers both directly and indirectly.<br />
www.privateequityconnect.com