Institute for Financial Transparency

Shining a light on the opaque corners of finance

22
Jan
2019
0

Transparency Literally Pays Off

A new study found that alternative investment funds that offer more transparency to their investors also perform better.

Private equity, real estate, infrastructure, and other alternative investment funds that provide the most transparency to their investors — or limited partners — are also the best performing, according to a new study released today by software provider eFront on the reporting practices of 1,800 funds that invest in private markets. …
The new research shows that getting comprehensive data is not just a nice-to-have feature, but is linked to better returns…. General partners that provide standard reporting templates — which eFront says provide highly detailed and granular data — have internal rates of return that are 10.2 percent higher than their peers, according to the study.