Managing a potential misalignment of interests
Watson Wyatt’s world class Investment Practice has recently published a paper arguing that private equity management fees form too high a share of a general partners’ (GPs) compensation.
Negotiating private equity terms has previously been challenging due to limited capacity in high quality GPs and the restricted ability of limited partners (LPs) to pool their bargaining power. The former has clearly contributed significantly to the latter.
In this paper, Watson Wyatt:
Highlights how it thinks about fees across asset classes and explains how it is applying this thinking to private equity
Discusses currently accepted fees and terms in order to encourage debate in the LP community, with the ultimate purpose of eliminating some of the more egregious terms seen in private equity
Discusses additional features of terms that are not yet common in the private equity community but would represent significant progress in improving alignment for LPs.
To receive a free copy of the paper, please contact:
Robert Richter
Compensation Consultant
Watson Wyatt Middle East
Premises No.1, 8th Floor, Block 10
Dubai International Academic City
00971 44363513 (direct)
00971 43640096 (office)
00971 501895816 (mobile)
Robert.Richter@watsonwyatt.com
www.watsonwyatt.com
In response to the numerous and varied queries that Watson Wyatt has continued to receive concerning the HR market reaction to cost fluctuations across the Gulf, this year we again conducted our popular survey on allowances across the region.
The main changes to the report versus previous years include the collection of data pertaining to consolidated allowances practices as well as the differentiation of married and unmarried employees in the collection of housing allowances data. As in previous years we have provided a high level of granularity in publishing dedicated ranges for each major GCC city wherever we have received sufficient data to do so.
The final report is the product of over 60 companies’ input, spanning a variety of industry sectors.
If you are interested in the survey and would like to receive a copy please contact:
Robert Richter
Compensation Consultant
Watson Wyatt Middle East
Premises No.1, 8th Floor, Block 10
Dubai International Academic City
00971 44363513 (direct)
00971 43640096 (office)
00971 501895816 (mobile)
Robert.Richter@watsonwyatt.com
www.watsonwyatt.com
