Hedge fund managers launching or acquiring equity stakes in private equity or venture capital firms must ensure they have adequate Chinese Walls in place to prevent conflicts of interest arising through separate vehicles, according to Seward &
Private equity managers ought to impose side letters on investors whereby the latter is prohibited through non-disclosure agreements from divulging highly sensitive, confidential information should they receive Freedom of Information (FOI) request
Private equity fees are among the fairest in the asset management industry and wholly transparent, and it is unlikely the Securities and Exchange Commission (SEC) will find any transgressions with the fee struct
Private equity firms adhering to “best practices” and which are transparent should have nothing to fear from the US Securities and Exchange Commission’s (SEC) growing interest in the fees and expenses they charge limited partners (LPs).
Institutional investors must not exert downward pressure on hedge fund fees if it compromises the quality of operational infrastructure at those businesses.
Newly launched US hedge funds are imposing tougher redemption terms on investors although management fees have declined, according to a study by Seward & Kissel.
Hedge fund managers need at least $300 million in Assets under Management (AuM) to enable the management fee to cover their operating costs and regulatory requirements, according to Citi Prime Finance’s 2013 Business Expense Benchmark survey.
Hedge funds charging performance fees of more than 20% have produced the highest net returns in four out of the past six years, according to data from Preqin.
A minority of funds of funds will survive, although consolidation is likely to continue, while hedge funds saw their overall share of alternative assets increase, according to a survey of the Top 100 alternative investment managers running $3.1 tr
