Private equity managers and investors divided over reporting
Investors are dissatisfied with the information they receive from managers, according to a global survey report released today by SEI in collaboration with Greenwich Associates.
The findings are despite the widespread view in the industry that there has been an increased focus on portfolio transparency and client reporting over the past few years.
Less than half of investors polled (43%) said they currently receive all the information they would like from their private equity managers, and only 10% of consultants.
By contrast, 85% of fund managers feel their investors receive all the information they need, revealing a misalignment of expectations between the private equity industry and its investors.
Senior vice-president and head of business development, Europe, for SEI’s Investment Manager Services division, said: “Managers’ reporting efforts have come a long way in recent years, but it’s clear from the survey that investors’ needs are evolving and they still want more. By satisfying investor expectations, managers will become trusted advisers and will deepen their relationships.”
Rodger Smith, managing director of Greenwich Associates, said the survey points to a “growing disconnect between private equity managers and investors on the depth and type of reporting data necessary despite continued growth in sector assets. Private equity managers need to direct their focus and efforts on the client service front in order to keep up with investor needs.”