The Limited Partner Perspective

Alan MacKayChairman, Abernethie.

$10 billion

individual LP - professional perspective

• more portfolio construction• more manager concentration• more ‘profiled’ management tariffs• more ‘variable’ performance tariffs

“emergence of the agile limited partner”

$115 billion

individual LP – institutional perspective

• PE is an equity not an alternative• PE is for high returns not for low volatility• PE must provide access to growth• PE must provide access to innovation

“ the renewed pursuit of upside”

$1,000 billion

LP community – professional perspective

• Institutional Limited Partners Association (ILPA)• Private Equity Investors Association (PEIA)• BVCA and EVCA

“ this is one asset class, LPs and GPs are in this together”

$34,000 billion

LP community – institutional perspective

• Principles of Responsible Investment (UNPRI)• Association of Investment Managers (AIM)• ABI and NAPF

“ PE is just one asset class, to attract strategic weighting it must deliver financial and non-financial performance”

In summary,

• emergence of the agile LP - the herd is dead• renewed pursuit of upside - access to growth and innovation• LP/GP dawning realisation - one asset class, one ecosystem• allocation - financial performance, non-financial permission

“You need us, and we need you. Jo Saver needs us both. So let’s keep adapting. And let’s keep it working.”