SEI's 2011 Private Equity Survey: Investor Demands Since 2008

411 private equity fund managers, investors and consultants participated in SEI's 2011 Private Equity Survey.  Due to underperformance in the years since the credit crisis, fund managers have been providing more transparency and liquidity.  Management and incentive fees have been lowered.  22% of investors are paying lower management fees and 38% are paying lower incentive fees.  37% of fund managers lowered management fees and 11% lowered incentive fees.  Size also matters.  The larger institutional investors were more likely to have their fees lowered while the larger private equity funds were more likely to lower them.  Managers were also trying to make their investors comfortable with their infrastructure, giving them solid performance data and educating them on the portfolio.

Factors to consider when raising capital:

• Have a clear investment philosophy
• More transparency
• Turn client service into asset growth

The source for this article can be accessed here.