Current Industry Trends In Private Fund Fees

As certain investors continue to seek out passive index strategies, fund managers running strategies that rely on active management have come under some pressure on their fees. In fact, industry tracker Preqin found in a recent survey that 43% of the fund managers they surveyed indicated their clients' primary concern was fee structure, up from 28% in December. Some of this concern is triggered by pension funds that are under pressure themselves to reduce fees, in part, due to their underfunded status. The impact of this has been felt across both hedge fund and private equity fund managers, and many fund managers have been providing investors with alternative fee structures or are considering doing so.