Industry Updates

SEI survey finds private equity managers struggle to keep up with increasing investor transparency demands

Tuesday, October 04, 2011

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Opalesque Industry Update - While nearly everyone in the private equity space agrees that there has been an increased focus on portfolio transparency and client reporting over the past few years, investors remain dissatisfied with the information they receive from managers, according to a global survey report released today by SEI in collaboration with Greenwich Associates. Less than half of investors polled (43 percent) said they currently receive all the information they would like from their private equity managers. That number dropped to 10 percent when the same question was asked of consultants. Conversely, 85 percent of fund managers feel their investors currently receive all the information they need.

The survey report, “Searching for Alignment,” compiling results from more than 400 institutional investors, consultants, and fund managers, revealed that managers sense investors’ concerns, as 45 percent said that satisfying investors’ expectations is their firm’s greatest operational challenge. The survey also suggests that managers are largely meeting expectations when it comes to basic transparency expectations. However, while 75 percent of managers see industry and sector reporting data as most important, 75 percent of investors and consultants seek more information on areas such as the leverage used in the fund and volatility statistics.

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