IDFs: More investors, less paperwork?; PEF’s Anquillare on fees

IDFs in private equity; Anne Anquillare on the fees and expenses tug of war.

PE and IDFs: Fund managers in private equity, real estate, credit and more are increasingly turning to investments wrapped in insurance policies, or insurance dedicated funds, to attract tax-sensitive investors, as well as those whose investment criteria don’t mesh well with some private funds strategies.

Some of the big names in private equity have reportedly been using these structures for years (via Investment News, subscription required), and it seems they’ve been popular in the hedge fund world for some time.

It appears to have more or less never come to the awareness of the financial press, but it is a big enough market to have its own annual conference, which attracts a pretty heavy-hitting crowd. And it’s about as complicated and obscure as a fever dream the night before a CPA exam.

But, the article argues, they can help expand your investor base and (more importantly for you, perhaps) take a chunk out of your paperwork and reporting processes.

Fees & Expenses: In a video interview conducted at the CFOs & COOs Forum in January, PEF Services CEO and president Anne Anquillare talks about the tug of war between GPs and LPs when it comes to certain services, like tech.

“Our industry has adopted a lot of technology over the last five years,” says Anquillare. “And [LPs] are trying to understand, is that technology for the benefit of the investors? Or is it for the benefit of the management company?”

Email prepared by Graham Bippart