A new survey of private equity professionals reveals that the growth and popularity of private equity has been coupled with expectations among investors for better disclosure and accountability. Topping a list of 12 factors investors looked for when choosing a private equity firm was the quality of its management team, followed immediately by the clarity of its investment philosophy. In third place was investment performance, rising in importance from 2009, when an earlier version of the poll ranked performance seventh among the 12 factors. Portfolio transparency and fee structure also ranked highly among investors.
The survey of 411 investors, fund managers and advisers was compiled by SEI, a financial outsourcing solutions provider, and Greenwich Associates, a financial research and strategy firm. Forty-nine percent of respondents were from North America, 30 percent in Europe and 21 percent from Asia, Latin America and other parts of the world.