Survey highlights extent of LP/GP perception gap

Anneken Tappe
05 October 2012

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LPs and GPs still hold vastly divergent views on key aspects of their relationship, with terms & conditions and communication being the major areas of conflict, according to recent research by Acanthus.

The vast majority (85%) of LPs surveyed consider terms & conditions, particularly fees, as a source of concern, while 80% of GPs consider their terms fair and unproblematic.

Investor protection clauses are another point of contention: half of all LPs qualify the existing clauses as weak, while almost all GPs think of them as robust enough.

LPs and GPs also have very divergent views when it comes to communication on strategy and performance. While 75% of GPs rated their information regarding poorly performing assets as good, only 10% of LPs agreed.

The survey shows, much in line with last year's findings, that LPs and GPs are still struggling to find common ground on key features of the partnership. That said, a third of LPs state that their relationship with managers has improved in the wake of the financial crisis. Those investors that are pushing for further improvement might find that GPs are quite satisfied with the status quo though: 40% of the GPs surveyed describe the current relationship as excellent, against less than a fifth of LPs.