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.
A roundup of recent institutional investors' hedge fund activity.
Many hedge fund portfolios perform well before costs but fall into negative alpha after charges are levied, Canadian firm CEM Benchmarking's analysis of nearly 400 large investors has found.
Reports are that the inclusion of 226 Chinese large caps in the Emerging Markets Index has gone well. Small-cap and mid-cap shares could follow if concerns about suspensions prove unfounded.
Staying fully funded is priority for the C$20 billion OPTrust, reflected in everything from the name of its annual report to its scaling down of equities, to manoeuvring for high-yield debt.
The $204 billion Florida State Board of Administration has decided today's market is overpriced and is unloading private equity and real estate to re-deploy capital for higher long-term yields.
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