INSTITUTIONAL INVESTOR SENTIMENT SURVEy - PEI Media

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Which processes are important when conducting due diligence? % 80 institutional investor sentiment survey 70 60 foreword 50 40 30 executive summary allocation 20 fees 10 0 More personal phone calls By providing more detail on the fund’s structure and investment focus By insisting senior investment managers and/or partners communicate with limited partners By tailoring investor request to individual investor requests • lp – gp relationship future investments and concerns appendix: global fundraising Source: Private Equity International When asked about ways that GPs could improve their communication with investors during the fundraising process, 69 percent of respondents insist that senior investment managers/ partners should communicate more with LPs. Simultaneously, 63 percent of investors want GPs to provide more detail on their fund’s structure and investment focus. 53 percent want more tailored feedback from GPs and 29 percent of investors simply want more phone calls with their fiduciaries. Investors tend to have a negative sentiment towards their GPs when they are not in regular contact and the information investors receive may not always meet their requirements. Transparency and support are now some of the main factors that investors look for in a fund manager and the issue is also being recognised by firms. Some fund managers believe that investors want greater communication and also see it as being in their best interest to be open with their investors. This is for the sake of financing future transactions, as they believe that investors who place trust in their GPs through strong relationships are more likely to do so. page 25 www.privateequityconnect.com
There is room for improvement with the quality of information freely offered by GPs while fundraising institutional investor sentiment survey foreword executive summary allocation Are you generally happy with the quality of information freely offered by the GP during fundraising? % 80 70 60 fees lp – gp relationship • future investments and concerns appendix: global fundraising 50 40 30 20 10 0 All of the time Most of the time Some of the time Source: Private Equity International page 26 When investors were asked if they were happy with the quality of the information that was freely offered to them by GPs during their fundraising efforts, the results were positive, with 73 percent saying that they were happy most of the time with the information and 24 percent saying that they were happy some of the time. Three percent of investors were happy all of the time with the information and no investors said that they had never been happy with it. This is to be expected, as during the fundraising process, it is in the interest of GPs to sell themselves and provide the most attractive information to potential investors. However, there is room for improvement in terms of the quality provided by GPs, with just over a fifth of investors revealing that they have been happy only some of the time. With 76 percent of investors happy at least most of the time with the information provided to them, the way GPs organise their fundraising processes does not need to be radically reorganised for the purpose of providing information of a greater quality, but may require some smaller modifications. www.privateequityconnect.com
Page 1 and 2: Institutional Investor Sentiment Su
Page 3 and 4: institutional investor sentiment su
Page 5 and 6: LP Respondents Breakdown Where is y
Page 7 and 8: Allocation institutional investor s
Page 9 and 10: Over the long-term, private equity
Page 11 and 12: Co-investments provide LPs with gre
Page 13 and 14: Fee breaks should be negotiated dep
Page 15 and 16: Fees should be calculated in connec
Page 17 and 18: LPs are requesting a “Europeansty
Page 19 and 20: GP fund commitments should be a mea
Page 21 and 22: SWFs prefer to target sectors which
Page 25: A vast majority of LPs conduct due
Page 29 and 30: Focus on… Endowments Distribution
Page 31 and 32: Strategy Appetite institutional inv
Page 35 and 36: The prevalence of zombie funds has
Page 37 and 38: Private equity is coming under incr
Page 39 and 40: Fundraising by Strategy 150 institu
Page 41: Published in July 2012 by PEI Secon

INSTITUTIONAL INVESTOR SENTIMENT SURVEy - PEI Media

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