The Future Of Private Equity: Overcoming Obstacles Necessary To Continue Industry's Unprecedented Growth, Reports SEI

OAKS, Pa., Nov. 01, 2016 (GLOBE NEWSWIRE) -- Private equity went from a niche asset class two decades ago to one that is much more likely to be found in individual and institutional portfolios today. " The Future of Private Equity," released today by SEI's (NASDAQ:SEIC) Investment Manager Services division examines the important choices managers and investors need to make regarding investment focus, data handling and outsourcing partnerships - all of which could ultimately mean the difference between success and failure as the industry continues to grow. SEI's Investment Manager Services division is a global supplier of customized operating infrastructure and services to investment organizations representing more than $15 trillion in assets under management.

In an effort to provide stakeholders with a comprehensive understanding of where private equity is heading, SEI surveyed more than 200 industry general partners (GPs), limited partners (LPs) and consultants. Key findings include: 
  • 64 percent of LPs plan to increase their allocation to private equity, marking a solid gain from only 26 percent five years ago.
  • More than eight out of 10 GPs say compliance costs are climbing faster than other operating expenses.
  • 65 percent of LPs are increasing the level of operational due diligence performed on GPs.
  • 71 percent of respondents state that the most obvious change occurring in recent years has been the rising demand for transparency, providing more visibility into risk, operations, performance and valuation than ever before.

"As evidenced by this report, the private equity market has experienced tremendous demand from a wide variety of investors, resulting in rapid growth and significant opportunities for the industry as a whole ," said Jim Cass, Senior Vice President and Managing Director of SEI's Investment Manager Services division. "To capitalize on this growth, however, GPs must address the unprecedented obstacles facing them - mainly seen as an increasing talent shortage, the complex web of regulatory requirements and myriad new operational challenges ."

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