Time for fund managers to get nervous

Are you a fund manager? Had a bad year, like everyone else? This article in the Wall Street Journal isn’t likely to cheer you up much. On the other hand, if you’re an investor and you’re wondering if your money is being managed properly, you’re not alone:

Whatever the cause of the industry’s troubles, investors in private-equity funds are growing restless. A survey of limited partners in European private-equity funds by Preqin Ltd., a London-based private-equity research group, found that 62% of investors are considering forming new relationships with general partners over the next 12 months and 31% said they would reinvest with their existing fund managers.

And if you think there aren’t some people out there making aggressive bids to replace managers with poor performance, then either you weren’t at CEDEM, or you weren’t paying attention.

Update: Just noticed this sentence buried in an interesting FT article:

Bankers are said to be lining up fund launches aiming to tap into the low market pricing, although investors are said to be reluctant to back new business plans unless the management has a strong track record.

It’s like a trend or something…


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