WO R LD VI EW - PR IVATE EQU ITY
THE CHALLENGES? Managers the world over were substantially challenged by market regulation in 2015. This has continued to be the case in 2016 and remains a major concern for 2017. Both Managers in the Americas, and to a slightly lesser extent, Asia, were also challenged
by fundraising during the year, and again this is considered to be a concern for 2017. Investment opportunities were considered to be of major concern in last year’s survey and they remain as a real concern, across all regions, for 2017. We
have seen the M&A markets slow down in 2016 and there is obviously concern that this trend will continue in 2017. Investors have anxieties about the number of good investment opportunities available to them. This was an issue last year and not
much has changed for 2017. Their second largest concern for 2017 is “Valuation Issues” – this is a new and emerging issue (26% recording it as a concern in 2016 growing to 46% in 2017) and one that Managers need to pay attention to.
CHALLENGES FACED BY MANAGERS
% 24 FUNDRAISING
% 24 MARKET
18%
INVESTMENT OPPORTUNITIES
REGULATION
16%
TAX REGULATION
12%
EXIT OPPORTUNITIES
6%
INVESTOR COMMUNICATIONS
AND THE FRUSTRATIONS? We asked the Investors what their biggest issues are in the day to day administration of their portfolios and both “Late Reporting” and “Lack of Transparency around Fees” came out as the biggest concerns, closely followed by “Insufficient Detail”. There are some genuine worries here, but when the Management community was asked about its concerns for 2017, “Investor Communications” came out at the bottom of the heap (the same in 2016). There is obviously a mis-match here. Investors have some real needs and wants and Managers must continue to develop their reporting and relationships with their Investors if they are to continue to attract new investment.
INVESTOR FRUSTRATIONS
23%
33%
LACK OF TRANSPARENCY AROUND FEES
30%
LATE MANAGER REPORTING
AUGENTIUS.COM Gamechangers 56
INSUFFICIENT DETAIL IN REPORTING
14%
REPORTING FORMAT