Quotable 2009: GPs have ‘more to prove’

Coller Capital’s Jeremy Coller on the need for better terms and conditions.

“The growth of private equity as an asset class is inevitable in the long-term, but we should understand that for many LPs, now, private equity is a harder sell internally, and for all LPs, GPs now have more to prove.”

Jeremy Coller, chief investment officer of Coller Capital. In early December Coller released a survey showing that 79 percent of LPs will refuse to re-up with existing mangers because of what they view to be unsound terms and conditions. The survey only confirmed what many managers had already discovered, that amid the drying up of capital the power pendulum has swung squarely over to the side of LPs in 2009, and will likely stay that way for the near future.

Excerpted from PEM’s “Survey: LP term concerns will prevent re-ups