Keeping LPs happy: It’s a whole new ballgame for private equity
During the recession many private equity firms deferred fundraising until market conditions improved. With the slight recovery we have seen, private equity firms are expected to flood the market looking for capital this year. However, with limited partners remaining somewhat cautious about investing, many private equity firms are faced with the prospect of not being able to raise a new fund in 2011 or, for some, ever again.
In this white paper, Grant Thornton and the Association for Corporate Growth explore today’s fundraising climate, what LPs will expect from private equity partnerships going forward, and how regulatory issues will affect private equity firms and the industry.
To explore these issues, we spoke with professionals who focus on various elements of the private equity industry, including LPs, general partners, regulatory professionals and fund managers. Based on these discussions we outline a number of potential solutions for attracting new investment funding:
- Infrastructure and operational enhancements
- Improved reporting and transparency
- Industry specialization
- Alternative investment strategies
- Portfolio-level value creation
