Chart of the Week: LPs assessment on GPS

 LPs look for top performing real estate managers  



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In the PERE Investor Sentiment Survey, PERE Research & Analytics asked LPs which issues concerned them most when assessing GPs. Of the four choices provided, the ability to access top performing real estate managers proved to be the one of the most pressing issues for survey respondents, with 81.2 percent responding that it concerned them to a very great extent or a large extent.

Another issue that also found 81.2 percent of LPs concerned to a large extent or a very large extent was the contention that GP fee structures did not harm the alignment of interests. This issue was even more important to LPs in the survey, as there was no LP who considered fee structures to be a non-issue.

The less important issues to LPs were the ability of GPs to gain access to emerging markets and larger funds limiting access to co-investment opportunities. However, although a higher proportion of respondents did not feel these issues were worth addressing with GPs, there was a small contingent of LPs that did consider these topics to be well worth their time.