Infrastructure fund fees “make us much less supportive” of the asset class: Watson Wyatt
| Dec 6th, 2009 | Filed under: Hedge Fund Industry Trends, Today's Post | By: Alpha Male |
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WTF?!
Alternative investment fees can be pretty complex and often confusing. In part, this is what makes the debate over hedge fund fees so acrimonious. Hurdles, high water marks, time periods, realized NAVs…They are sometimes enough to turn away all but the most experienced and quantitatively-adept investors.
A recent article by Watson Wyatt shows how another class of alternative assets – infrastructure funds – share many of these same complexities. In fact, infrastructure shares more in common with its closest relative, the private equity fund. And private equity funds were the undisputed pioneer of complex fee arrangements.
In general, the firm concludes that most infrastructure fees are simply too high: More…
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