Intertrust Group: GPs Feel the Strain as LPs Push for More Transparency on Portfolio Performance and Fee Structures

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As well as portfolio company performance, over half of GPs (63%) expect LPs to call for improved disclosure on risk exposures, fee structures (60%) and expense allocations (48%).

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Business Wire, Inc.Business Wire, Inc.
Retrieved on: 
Monday, July 6, 2020
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Other Professional Services, Finance, Health, Consulting, Professional services, Technology, Other Technology, Other Health, Intertrust, Euronext, Intertrust Group
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Europe, United States, United Kingdom, NEW YORK
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INTERTRUST
Summary
Key Points: 
  • As well as portfolio company performance, over half of GPs (63%) expect LPs to call for improved disclosure on risk exposures, fee structures (60%) and expense allocations (48%).
  • Intertrust (Euronext: INTER) is a global leader in providing tech-enabled corporate and fund solutions to clients operating and investing in the international business environment.
  • Intertrust has leading market positions in selected key financial markets, including the Netherlands, Luxembourg, Jersey and the Americas.
  • Intertrust delivers high-quality, tailored corporate, fund, capital market and private wealth services to its clients, with a view to building long-term relationships.


Over four fifths (82%) of US private equity professionals expect investors to demand more transparency in reporting on portfolio company performance over the next 12 months, reflecting growing concerns over the impact of the COVID-19 pandemic.

Intertrust, a global leader in providing tech-enabled fund and corporate solutions, interviewed 142 private equity professionals across Europe, North America and Asia to identify the risks and opportunities facing the industry over the coming year.

As well as portfolio company performance, over half of GPs (63%) expect LPs to call for improved disclosure on risk exposures, fee structures (60%) and expense allocations (48%).

As GPs respond to ever rising demands for transparency among LPs, 45% of US managers agreed that investor reporting has become one of the biggest pain points facing private equity CFOs and 30% expect to see a growing appetite for outsourcing fund administration over the coming year.

When asked to assess how private equity managers are prioritising investor reporting improvements, over two thirds (68%) cited greater transparency in the level of information supplied such as the reporting templates issued by the Institutional Limited Partners Association (ILPA), designed to encourage uniformity in fees, expenses and carried interest disclosures.

Over half of respondents (55%) believe the answer to dealing with increased demands for investor reporting and transparency lies in adopting digital solutions, such as a digital portals offering anytime access to financial information.

James Ferguson, Head of Americas at Intertrust, said: “COVID-19 has exacerbated the growing trend among LPs for more granular data from their GP partners and it’s no surprise that portfolio company performance, risk exposures and fee structures are at the top of their lists. Investor reporting is putting increasing pressure on GPs who are rightly seeking tech-led solutions. We’re seeing growing interest from US private equity managers in the type of tech-enabled support we can provide and expect this to continue rising in line with the push for greater transparency and operational efficiency.”

To download the full Global Private Equity Outlook 2020 report, please click here.

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*Research was carried out in April 2020 by Citigate Dewe Rogerson, on behalf of Intertrust. A total of 143 responses were gathered from private equity fund managers across Europe, North America and Asia via an only survey sent to a global database of private equity professionals provided by Intertrust and Preqin.

About Intertrust

Intertrust (Euronext: INTER) is a global leader in providing tech-enabled corporate and fund solutions to clients operating and investing in the international business environment. The Company has more than 3,500 employees across 41 offices and 30 jurisdictions in Europe, the Americas, Asia Pacific and the Middle East. Intertrust has leading market positions in selected key financial markets, including the Netherlands, Luxembourg, Jersey and the Americas. Intertrust delivers high-quality, tailored corporate, fund, capital market and private wealth services to its clients, with a view to building long-term relationships. The Company works with global law firms and accountancy firms, multinational corporations, financial institutions, fund managers, high net worth individuals and family offices.

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