LPs largely satisfied with GP transparency regarding COVID19

10 June 2020

The vast majority of private equity Limited Partners are satisfied with the level of information they are receiving from fund managers on the state of their portfolio investments, according to the Brackendale LP Private Equity Sentiment Survey 2020. 

Some 92% of LP respondents claim they are seeing proactive engagement, regular and thorough updates, analysis and action plans from most GPs on the impact of COVID on existing portfolios, with additional information often being provided via "COVID-calls”.

A more mixed review was given by the remaining 8% of LPs, who claimed some GPs are not communicating enough, or at all, given the current situation.  One alluded to a “bell curve of transparency and communicativeness, with the best GPs setting a high bar, making the laggards look weak in comparison.”

Among the survey’s other findings:

  • Some 71% of LPs say they will become more active in the secondaries market as a direct result of COVID
  • As many as 62% of LPs surveyed are willing to make commitments to new funds even if they are not able to visit them, with the remaining 38% purely focusing on re-ups
  • 60% of LP respondents see the value in fund manager pitches via video conferencing, compared to 36% that answered they ‘maybe’ see the value, and a mere 4% see no value
  • Some 32% of LPs have been forced to place fund commitments on hold because of the current pandemic
  • 12% of LPs surveyed are changing investment strategy and turning to new market segments such as special situations, turnaround, Private Debt, Distressed, dislocated credit and moving away from sectors like consumer and energy, as a direct result of the pandemic
  • Unsurprisingly, 92% say LP distributions had been negatively impacted by the pandemic

LPs surveyed hail from across Europe and the US, and comprise a mix of pension funds, insurance companies, family offices and fund-of-funds.

Fay Margo, Founding CEO, Brackendale: “Given the market turbulence and unprecedented times, we thought it an opportune moment to launch our first ever LP sentiment survey. It is heartening to discover how well GPs are responding to the current crisis, and that LPs are open to new ways of being pitched to, and even to commit without having to meet the fund managers in person.”

 

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About Brackendale Consulting Ltd
Brackendale Consulting Ltd is a European agency offering investor marketing and communications services to clients within the private equity industry. The firm specialises in producing professional and visually compelling investor marketing materials such as investor pitchbooks, PPMs, ESG reports, quarterly reports and investor newsletters, as well as offering investor pitch training. Brackendale also devises effective media and communications campaigns, and its graphic design team is skilled at corporate identity, branding, logos and redesigning private equity websites. Brackendale employs multilingual staff with deep sector experience and an extensive contact network across the private equity community. For more information please visit www.brackendaleconsulting.com


   
Media contact:

Fay Margo, Brackendale Consulting Ltd
Fay@brackendaleconsulting.com
Tel: + 44 1342 825136