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There is no doubt the combination of a punishing Securities and Exchange Commission crackdown in the wake of the financial crisis, together with LPs finally finding a common voice in ILPA, has led to a tightening of practices and procedures around the issue of private equity fees and expenses.
What started with the Dodd-Frank Act and the creation of a specialist Asset Management Enforcement Division at the SEC a decade ago led to headline-grabbing multimillion-dollar settlements with private equity giants before driving opacity out of the asset class and resolving controversial issues about who pays for what. And yet, SEC sanctions persist and tensions between investors and managers remain.
It is clear there is still some way to go. Conducted biennially since 2014, the Private Funds CFO Fees & Expenses Survey has captured these shifts in the GP/LP relationship. Here are a few of the most important developments identified this year.
For the rest of the findings from our biennial Fees & Expenses benchmarking survey, click here.