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.
Manager selection led to nearly three-quarters of outperformance for Texas Teachers in 2017 as the fund beat its benchmark by 168 basis points.
Craig Dandurand, director of debt and alternatives for the Future Fund, offers a glimpse into how it has recalibrated its approach to investing in hedge funds and other risk premia.
As the Canada Pension Plan Investment Board gets larger, it is considering how to retain its sizeable private-market holdings with public proxies. It’s a ‘capacity issue’.
As structural shifts in the asset class have reduced persistence and returns, even long-time players have had to re-think strategy. So how have they adapted?
Private equity is undergoing a structural change – with persistence and performance waning – but co-investment may not be the panacea, MIT’s Antoinette Schoar discovers.
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