In this latest paper, Watson Wyatt, suggests some changes to redress the imbalance in private equity fees including changing the basis on which a manager sets its management fees; and that GPs should consider phasing in management fees over the investment period to reduce the significant fee drag from paying on commitments early in the life of a fund.
Nest, the largest workplace pension in the UK, says that private credit managers who prioritise institutional clients will be more favourably viewed. The £61 billion ($82 billion) fund has awarded a £450 million ($605 million) US direct lending mandate to Crescent Capital this month, citing the manager's institutional-client-first approach as a key attraction.
The $37 billion Utah Retirement Systems (URS) will allocate to private equity managers directly, rather than through funds-of-funds, for the first time since it began investing in the asset class 35 years ago.
It’s been said the “public market is quickly becoming a holding pen for massive sleepy corporations”. This has investors taking more late-stage stakes in private companies as perceived risks ebb.
The $6 billion Adventist Health System is considering more risk as it grows and is seeking to gain from efficient processes. The goal remains maximum effectiveness in provision of healthcare.
Australia's $107 billion sovereign wealth fund added risk based on near-term outlooks and boosted its holdings in private equity, during a year in which it handily beat one-year and 10-year aims.
Thanks to recent history, flawed methodology and ill-chosen indices, most say PE consistently outdoes public equity. But the right data tells a different story, Oxford academics write.
The $53.8 billion AP7 is using shareholder resolutions to push companies to reveal their true positions on the Paris agreement and other measures. Corporations are taking notice and changing.
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