What the private funds market is thinking about fees and expenses
At a time of industry evolution, fees and expenses are not immune from upheaval. This edition of the biennial survey received responses from 132 fund managers, with the findings underlining how the industry has evolved from opaque disclosure and allocation practices toward a climate of transparency and scrutiny. We examine how broken-deal fees are impacting alignment among key stakeholders; how co-investments are reshaping expectations; and how LPs face an expanding set of costs.
SURVEY INSIGHTS
Fees and expenses survey: Seven key takeaways
Conducted biennially since 2014, the Private Funds CFO Fees & Expenses Survey captures the evolution of the GP/LP relationship
Fees and expenses survey: How we reached our results
Conducted biennially since 2014, the Private Funds CFO Fees & Expenses Survey captures the evolution of the GP/LP relationship
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PREVIOUS SURVEYS
Our biennial survey reveals the latest developments in fees and expenses, as the power to determine best practice returns to the industry.
The SEC is tightening its grip on fees and expenses, with an array of new proposals currently under review. At the same time, investors themselves continue to build negotiating power, under the auspices of the Institutional Limited Partners Association.
Conducted biennially since 2014, the Private Funds CFO Fees & Expenses Survey has captured the latest evolutions in the balancing act that is the GP/LP relationship. As the industry finds itself at a turning point, we pinpoint the most important developments identified this year.
Fees and expenses: The charts that matter
Our biennial survey shines a light on fees and expenses as the SEC seeks to tighten its grip.
The SEC’s scrutiny is coming, ready or not
The SEC is ramping up its scrutiny of fees and expenses. Is the private markets industry prepared for what may come next?
The cost of compliance
If new SEC proposals come into force, it could create a punishing SME funding gap.
The cost of broken-deal fees
The debate around who pays dead deal fees has entered a new phase.
The complex world of management fees
Private equity’s two and 20 fee structure belies a host of idiosyncrasies, especially how management fees should be handled at the other end of a fund’s life
The co-investment controversy
Disagreement over broken-deal fees could spell the end for co-investment if the regulator intervenes
Picking up the tab
With funds keen to farm out non-core functions, the issue of whether the management company or the fund should be paying outsourcing costs is rising up the agenda
Fees and expenses survey 2022: How we reached our results
The Private Funds CFO Fees & Expenses Survey – formerly known as the PFM Fees...
CSC on the future of private fund regulation
The private capital industry has reached a crucial juncture, says Anne Anquillare, CFA, CSC’s head of fund services, North America.
SEC has fees and expenses in its sights, says Troutman Pepper
SEC proposals represent a significant change in approach, say Troutman Pepper partners Stephanie Pindyck-Costantino, Julia Corelli and associate Patrick Bianchi.
Withum: (Sort of) breaking news
Private equity remains squarely on the minds of legislators, writes Tom Angell, a partner at Withum.
Download Private Funds CFO’s 2022 Fees & Expenses Survey
In the magazine: PF CFO’s biennial survey of what the industry is thinking about fees and expenses as the SEC seeks to tighten its grip; Expert comment from CSC, Troutman Pepper and Withum; Plus much more…
In our 2018, Fees & Expenses Survey, we found the pendulum remained very much in the GPs’ favor during fee negotiations. But there was some speculation then that a downturn could cause a swing in LPs’ favor. Now, with covid-19, there have been some significant changes to the way that LPs and GPs are doing business
The 2020 Private Funds CFO Fees & Expenses Survey shows that both GPs and LPs are getting some of what they want, but the tug of war continues.
Eight charts that matter from the survey
Everything you need to know about changes to private equity fees and expenses in the covid era.
Charged up over management fees
The historic two-and-20 fee model is belied by a host of idiosyncrasies and the headline fee charged only tells you so much.
Bright lines on fees and expenses
Six distinguishable trends that our biennial Private Funds CFO Fees & Expenses Survey has illuminated.
PEF: Management fees are about alpha and alignment
Viewing commitments to private equity as an expense management exercise can be detrimental, writes PEF Services president and CEO Anne Anquillare.
The effect of the ILPA template
Bespoke fees and expenses reporting remains common practice.
Deal or no deal: Who pays when an investment fails
Few costs are as unwelcome as those for broken deals.
Troutman Pepper says LPACs are in the hot seat
Advisory committees are becoming intertwined with fund operations, say Troutman Pepper partner Julia Corelli and associate Patrick Bianchi.
When the SEC comes knocking
Private equity remains firmly in regulators’ sights, despite marked improvements in transparency.
Outsourcing costs: Who pays what?
As outsourcing soars, debate around who foots the bill rumbles on.
Withum’s Tom Angell optimistic on co-investment
In 2020, the more straightforward an investment, the better, writes Withum partner Tom Angell.
Conflict over co-investment terms
GPs pull back on sharing deals amid controversy over fees and transparency.
Going long: Waiting out the market uncertainty
What happens to the management fee when a firm runs out of time?
Download Private Funds CFO’s Fees and Expenses Survey 2020
In the magazine: Everything you need to know about private equity fees and expenses in the covid era in our exclusive survey; Expert comment from PEF Services, Troutman Pepper and Withum; Plus much more...
LATEST NEWS AND ANALYSIS
Delivering PE’s alpha is key to retailization, SEC’s Daly says
‘The skill of private fund managers is valued by this White House, is valued by this commission,’ Brian Daly tells standing-room-only crowd at Private Funds CFO Network’s regulatory forum in Washington.
The ownership edge
Employee-owned fund administrators can offer a competitive advantage during this era of consolidation, according to Celeste Barone, the president, chief client officer and co founder at 4Pines Fund Services.
Arnold & Porter rehires fund formation partner
The hire strengthens the firm’s investment management bench across fund formation, sponsor structuring and regulatory matters.
In the Loop: ‘Enforcement is real’
With partial wins in California and Oregon, antitrust/corporate-practice-of-medicine reformers feel the wind at their backs.
PFAR lives on in disclosure practices, survey finds
Private Funds CFO's recent survey on fees and expenses shows that GPs are still shaping policy around PFAR standards.
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