Transparency is key to keep LPs and GPs aligned, writes Preqin CEO Mark O’Hare in his Foreword to Preqin’s 2021 Private Capital Fund Terms Advisor

Transparency is key to keep LPs and GPs aligned, writes Preqin CEO Mark O’Hare in his Foreword to Preqin’s 2021 Private Capital Fund Terms Advisor 

 

 

Fund terms and conditions are business critical. More than half (57%) of investors we surveyed have walked away from an investment because of terms and conditions, and a quarter do so on a regular basis. Transparency within the industry is vital to ensure that the interests of GPs and LPs remain aligned. More investors are concerned about how performance fees are charged (51%) and GP commitments to funds (50%) than the amount charged (36%), our survey finds. 

This year marks the 15th edition of Preqin’s Private Capital Fund Terms Advisor. This report is based on data from more than 12,000 funds, 28% of which are either vintage 2020, 2021, or currently in market. I thank the many GPs who shared data with us, on condition that we use it anonymously and for benchmarking purposes. 

It’s no surprise that this report has always been attractive to both LPs and GPs – in fact, it’s the longest-running report that Preqin publishes, dating back to our first issue in 2006. It’s also time, in one way, to say farewell to the Private Capital Fund Terms Advisor in its current form. 

Next year we will say hello to a new, improved report, alongside enhanced data and services. I am delighted that earlier this month we welcomed Colmore, a leading private markets technology, services, and administration business, to the Preqin family. The acquisition adds significant expertise and capabilities, including Colmore’s unique FAIR Fee Tracking and Validation Service. I look forward to working closely with CEO Ben Cook and the 180-strong Colmore team to build on our leading positions across the full private market lifecycle.   

Even during turbulent times, alternative assets have continued to grow and evolve. Over the past 12 months we have continued to invest to deliver to you – our network of over 120k global alternative assets professionals – better data, tools, and insights to help you discover new opportunities, benchmark your performance, and find top-tier industry partners. In the past year alone, we: 

  • Launched ESG Solutions to provide you with critical visibility of GP-LP environmental, social, and governance factors at a firm, portfolio, and asset level.
  • Launched Company Intelligence, providing you with access to detailed profiles and searches across Preqin’s sponsor-backed company universe.
  • Improved ease of access to our exclusive content, from all platforms and locations, through our refreshed mobile application and APIs.
  • Achieved major data growth across our platform, with our investor profiles up 20% to almost 20k, our fund profiles up 12% to 117k, and our GP coverage up 10% to 43k profiles.

As you have come to expect from Preqin, The Home of Alternatives™, we will continue to invest heavily to ensure you have the most comprehensive view of the alternative assets industry. 

Thank you for your ongoing support, and happy investing. 

 

This Foreword was first published in The 2021 Preqin Private Capital Fund Terms Advisor report. 

 

The opinions and facts included within the above do not constitute investment advice. Professional advice should be sought before making any investment or other decisions. Preqin accepts no liability for any decisions taken in relation to the above.