Answering LPs’ transparency needs
Private Equity International interview: Answering LPs’ transparency needs
Last September, Melbourne-based institutional fund manager IFM Investors made an unusual announcement. The firm, with A$127 billion ($89 billion; €79 billion) of funds under management (including A$1.8 billion in private equity, including direct investments in the Australian mid-market), declared a 7.5 percent fee rebate to its 370 clients.
Pension funds are looking for more scale opportunities and direct access to midmarket companies and not necessarily sub-scale diversified investments through blind-pool funds. They are willing to take a much longer term view than traditional private equity funds.
IFM, which issued its first fee rebate in 2011, challenged other managers to follow suit. Such a move is rare in the world of funds management, in particular, where there has been little deviation from the traditional fee structure. We asked IFM investors’ global head of private equity Stuart Wardman-Browne and IFM investors private equity executive directors Adrian Kerley and David Odgers what it signals about the changing nature of the LP-GP relationship.
Meet the authors
Stuart Wardman-Browne
Stuart is Global Head of Private Equity, responsible for Private Equity fund raising as well as sourcing, structuring and negotiating new investments. Stuart has extensive experience in Private Equity investment management, with a long investment track record, extensive networks and proven execution capabilities.
Adrian Kerley
Adrian is responsible for sourcing, structuring and negotiating new private equity investments, managing existing investments as well as fundraising. Adrian has extensive finance and private equity experience, joining IFM Investors from Commonwealth Superannuation Corporation (CSC), the pension fund for Australian government employees and members of the Australian Defence Force, where he was Head of Private Capital.
David Odgers
David is responsible for sourcing, structuring and negotiating new private equity investments, managing existing investments, as well as fundraising. David has more than 20 years of experience in private equity, consulting and business leadership roles. He joined IFM Investors from Bain Capital, where he was an Operating Partner with responsibility for investments in MYOB, Retail Zoo and Camp Australia.
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