September 12, 2016

How Firms Balance SEC and LP Demands

An executive summary of the Privcap video series “PE’s Bold New Era of Transparency”.

Key Findings:
1. The SEC played a key role in creating an “awareness campaign” focused on PE fee allocations
2. PE firms must invest in people and infrastructure to respond to SEC and investor demands
3. Like hedge funds, PE firms are outsourcing key fund-administration functions
4. Timely, useful portfolio-level data is eagerly sought by LPs, but difficult to deliver
5. Creating a policy for sorting out expenses between the fund and the GP entity is critical