December 18, 2018, Atlanta – The findings report from the 2018 eVestment Private Markets Due Diligence Survey was recognized as a “Best Alternatives Paper 2018” in the recently announced Savvy Investor Awards. The eVestment Private Markets paper was noted among the “Highly Commended” papers submitted to the awards.
The paper explores the results of eVestment’s annual survey on the views and practices of fund managers, investors and consultants on a wide variety of topics related to private markets fundraising and due diligence processes.
“By running the only annual survey focused solely on due diligence practices, we aim to provide actionable insights to help investors gauge peers’ best practices and equip fund managers to better navigate their investor relations and fundraising activities.” said Katey Bogue, head of eVestment’s Private Markets group. “This recognition is especially timely as it reinforces the value of this annual data to the industry just as we launch the research for our 2019 edition.”
This year’s process will be done in collaboration with Nasdaq, following their acquisition of eVestment in 2017, to scale the scope and insights provided by the results. Private markets fund managers, institutional investors and consultants are invited to participate in the 2019 Private Markets Due Diligence Survey via this link: http://www.evestment.com/privatemarkets/due-diligence-research-19
Some key findings of the 2018 Private Markets Due Diligence Survey included:
- Of the fund managers surveyed, nearly two-thirds reported the use of credit facilities with over a third of this group having facilities in place of between two and five years. Despite credit facilities gaining negative media coverage, investor and consultant respondents were in fact largely neutral on the use of them by managers: only 23% view them negatively and coincidentally the same percentage viewed them positively.
- Investors and consultants still face challenges in being able to compare the performance of one fund manager to another, as cited by 61% of respondents. They are seeking to overcome this by leveraging deeper data: 78% of fund managers reported that investors and consultants were requesting more granular data this year compared to previous years and 74% of investors and consultants stated that they always or often recalculate fund performance numbers.
- Investors and consultants spend significant time performing due diligence on fund managers – 21 days for a manager with which they already have a relationship and 40 days for a new manager.
- ESG considerations were noted as extremely or very important by 46% of investor and consultant survey respondents in the Europe, Middle East and Africa (EMEA) region, while only 18% of investor and consultant respondents in the Americas rated ESG as extremely or very important.
The paper by eVestment Private Markets was in good company in this category this year, with other papers from Bain & Company, EY and McKinsey & Company also among those noted as “Highly Commended.” The winner in the category was the CFA Institute Research Foundation and CAIA’s “Alternative Investments: A Primer for Investment Professionals.” To learn more about the papers recognized in this category, please click here.
To download a copy of the 2018 eVestment Due Diligence Survey, please click here.
To participate in the 2019 research survey, please click here.
eVestment, a Nasdaq company, provides a flexible suite of easy-to-use, cloud-based solutions to help the institutional investing community identify and capitalize on global investment trends, better select and monitor investment managers and more successfully enable asset managers to market their funds worldwide. eVestment’s mission is to help make smart money smarter.
# # #