In this environment, a sophisticated investor will take into account a range of factors in evaluating the opportunity:
- the house's track record
- credibility of the team
- industry experience and ability to add value
- robustness of the house's systems, risk management and governance procedures
- the way tax structures match their individual complex needs
- clarity and substance of the key messages presented.
Increasingly we see the demand for more transparent presentation of investment performance. Fund providers know that valuations are based on guidelines, and they know the extent to which subjective factors make comparison between funds difficult. Independent review and verification by a coordinated audit and legal team is becoming a requirement, and can help strengthen the credibility of your case.
Looking to contract with a range of participants, starting with existing investors for follow-on funds, PE houses can draw investors from the global investment community.
Tax considerations will be of paramount importance to these investors and you need advisors with the global reach and knowledge to give you some of the most appealing structures.
In these pressured times, our clients know that KPMG can help investors achieve their goals.