Home > Communications and marketing, Investor Relations, Private Equity and VC, Research and surveys, Uncategorized > Life as a Limited Partner during the financial crisis – The Good, the Bad and the Ugly

Life as a Limited Partner during the financial crisis – The Good, the Bad and the Ugly

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LPs demand better communication

GPs with poor communication are losing out

Earlier this month I had the honour and pleasure to be invited onto a panel at the 6th Annual Private Equity Forum at my alma mater. The panel sought to address how LPs had been affected by the financial crisis and, not being a Limited Partner myself, I thought it prudent to ask some, beforehand. If you were one of the 60 institutional investors into private equity that responded to my questionnaire, many thanks!

In any case, and as my colleagues predicted, there was no real need to call upon the research findings during the event. But some of the findings were so intriguing that I wanted to share them with you. I hope you find them as interesting as I did.

The link below will take you to a summary of the results.

Limited Partners in a New Era – the Good, the Bad, the Ugly

People prefer performance, and that will never change, but we found that many LPs had already ditched managers that they felt had not been communicating with them sufficiently well and some found that misalignment of interests between LP and GP (shock! horror! such DO exist!) had become more apparent during the crisis.

There’s much, much more in the full report, so I hope you will take the time to dive in. If you have any questions or comments, you know where to find me!

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  1. Julian Longhurst
    May 21, 2010 at 2:33 pm

    A very interesting data set overall. As a provider of communications services to the PE community, I was obviously pleased/interested to see signs that LPs will increasingly seek clarity and transparency of communication from their GP relationships. It’s about time the GP community took this area more seriously.

    • May 21, 2010 at 2:43 pm

      Thanks for your comment, Julian. LPs are already discarding GPs asking for re-ups, who they feel have not been sufficiently transparent with them in the past.

  1. May 18, 2010 at 6:28 pm

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