As U.S. regulators shine a spotlight on how private equity firms charge fees and allocate expenses, some asset managers are using the scrutiny to gain leverage in new investment negotiations, experts say.
Pension funds, sovereign wealth funds and other asset managers that have long been the backbone of private equity investments have accepted relatively high management fees for years as a cost of gaining access to the industry’s outsized returns. But as the once opaque market stumbles further into the light, investors are finding U.S. Securities and Exchange Commission concerns offer valuable insight.