Nick Groom’s Post

Happy New Year!! This is a must read if you are considering private markets and private equity in particular in your DC portfolios. Here we challenge the current negative thinking about performance fees and put forward a very strong case for their inclusion, to ensure that you don't end up compromising the quality of the underlying assets by trying to change the way top quality PE managers are remunerated and will continue to be in the future. Main takeaways: • Quality is the key driver in the performance beating the hurdle rate • In only 12 out of 20 years has the median PE fund beaten the hurdle rate • It's impossible to access the best PE managers without paying performance fees At Natixis Investment Managers we can be creative with the addition of co-investments, secondaries and emerging manager programmes to build a flat fee that can be flexed up or down with the addition of a small performance fee element, keeping your fees competitive which we hear is one of your main objectives. And you only pay performance fees if you beat the hurdle rate you are happy with! Thanks to all who attended this excellent session. #MarketingCommunication #privatemarkets #privateequity #performancefees #DC #DCschemes