P-E flyers don't contain enough info, investors say

Survey reveals big disconnect between what investors want — and what fund managers think they want

Oct 5, 2011 @ 1:04 pm

By Jeff Benjamin

The increasing demand by investors for greater transparency across the financial services landscape is catching the private-equity space a little flat-footed, according to the latest research from SEI and Greenwich Associates.

A global survey of more than 400 institutional investors, consultants and fund managers found that just 43% of the investors surveyed said they are receiving all the information they would like from private-equity managers.

Conversely, 85% of P-E fund managers feel their investors receive all the information they need.

“Managers who continually strive to fulfill investor expectations will lead the pack when it comes to raising and retaining assets,” said Philip Masterson, senior vice president and head of business development in Europe for SEI's investment manager services division.

“Managers' reporting efforts have come a long way in recent years, but it's clear from the survey that investors' needs are evolving and they still want more,” he added. “By satisfying investor expectations, managers will become trusted advisers and will deepen their relationships.”

In terms of gauging investor concerns, the survey revealed that 45% of fund managers identified “satisfying investors' expectations” as their firm's greatest operational challenge.

On the topic of transparency, the survey suggests that basic demands are being adequately met, but there appears to be a gap is what managers and investors see as most important regarding transparency.

While three-quarters of the surveyed managers see industry and sector reporting data as most important, the same percentage of investors and consultants said they want more information on areas such as leverage used in the fund and volatility statistics.

“Private-equity managers need to direct more focus and efforts on the client service front in order to keep up with investor needs,” said Rodger Smith, manager director at Greenwich.


What do you think?

View comments

Most watched


Schwab's Jeff Kleintop: Prep for volatility given China trade uncertainties

China could be considered a developed market in five to seven years , according to Jeff Kleintop, chief global investment strategist, Charles Schwab.


Young advisers envision a radically different business in five years

Fintech and sustainable investing are two factors being watched closely by some of the 2019 class of InvestmentNews' 40 Under 40.

Latest news & opinion

TIAA exits the life insurance business

The move is a big deal for RIAs, experts say, since TIAA was one of only a few insurers to offer fee-only life policies.

Advisers step up efforts to help clients manage student loan debt

As some Democrats campaign to wipe the slate clean, financial planners focus on limiting the amount students borrow.

Funding for Reg BI, other SEC advice reform efforts denied in Waters amendment

House likely to approve measure that effectively kills rule package, but it faces uphill battle in Senate

Wall Street lashes out at Sanders' plan to pay off student debt with a securities trading tax

Financial pros argue that a transaction levy will hurt mom-and-pop investors along with investment houses.

GPB paid B-Ds and reps steep commissions to sell troubled private placements

GPB paid commissions of 9.3%, or $167 million altogether, on the firm's private placements.


Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print