• English   Deutsch   
  •  GMT      
  • LONDON      
  • FRANKFURT      
  • NEW YORK      
  • SAO PAULO      
  • TOKYO      
  • SYDNEY      
Hedge Fund Database
Morgan Hedge Fund Database
USERNAME

PASSWORD

FEATURED SERVICE PROVIDER

  Hedge Fund Search
Name, ISIN, Ticker:
  

Hedge Funds Search Detailed Search
  Hedge Fund Directories
Listed Hedge Funds:9,761
HF Professionals:16,344
Service Provider:475
Private equity and fees
 
  Hedgeweb - FRI, NOV 07 2008
Comment & Analysis Solomon Owayda, who oversees Ä4.4bn of private equity investments at SVG said at a conference in London that "I am going to have a hard time when someone is trying to raise their third or fourth fund and itís going to be $4bn or $5bn and they still want to charge 2 per cent."

His comment is an admission that private equity fees seem unacceptably high.

However he, like many others, is missing the point. Raising money from cash-strapped investors will not be easier with lowered fees. What investors are looking for is a sustainable business model that can produce positive results over the long term. Instead of concentrating on fees, Mr. Owayda should reflect on investments his firm has made and focus on future investments.

Many investors now realize that large parts of the private equity boom had nothing to do with fundamentals and more to do with access to financing. Unless this view changes, private equity groups will have a hard time raising money in the future - even with drastically reduced fees.

AM

 
 
© Morgan Hedge™ · HEDGEweb™
Morgan Hedge and HEDGEweb are Trademarks of morganhedge.com, TAA LLC and VIImedia S.A.