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 $29 billion Employees Retirement System of Texas will add to its alternatives portfolio over four years and wants small managers to represent 10 per cent of its active mandates.
Hiro Mizuno, CIO of the world's largest investor, told the CFA conference that in exchange for multi-year commitments its mandates would now claw back fees when firms don't reach alpha targets.
The Asian giant has a vibrant tech sector, a growing middle class, and a government making changes to improve access. It’s enough to make many take on the market’s volatility and other issues.
AI and other advances are making assets like toll bridges more challenging. Opportunities are emerging from privatisation but the days of 'set-and-forget' may be coming to an end.
The CIO of the $4.3 billion fund manager argued in a panel discussion that an excess of capital in the market and lack of access to top general partners have hurt the asset class.
In the GFC, many investors got burned as limited partners, by costly experiences and opaque strategies. To fix the damaged relationships, a focus on disclosure and aligned interests is essential.
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