Hermes’ Anson queries private equity fees
UK - Hermes Pensions Management chief executive Mark Anson has called for lower private equity fees, according to reports.
Anson was quoted by news agencies as voicing concerns about fees and the volume of deal turnover at a speech at the Securities and Investment Institute.
The remarks follow an announcement recently of a shift into alternatives at the BT Pension Scheme, Hermes' parent.
"The fee structure of private equity funds is the same as it was say, 10 to 15 years ago," he was quoted as saying.
There was a conflict as the firms with the highest fees usually had the best investment returns.
Hermes itself employs 11 private equity investment executives and manages approximately £1bn through Hermes Private Equity.
Hermes has an overall £62.7bn under management.
It has invested in private equity asset class for many years -principally by investing in independently managed private equity and venture capital funds with a focus on Europe and US.
Hermes Private Equity invests in UK and European mid-market companies in a broad range of sectors. Investee companies will have a strong management team and a clearly defined growth strategy.
HPE works in partnership with management to grow businesses by actively involving itself in business strategy, by aligning interests with management through equity incentivisation and adding value though its network of contacts.