LP Perspectives Survey 2014

What are the issues at the top of your agenda in regards to infrastructure investment? On the following pages, we've broken this question down into five categories. In each category, please pick the three issues of most significance to your organisation, ranking them in order of importance (with one being most pressing).

	1st	2nd	3rd
Regulatory risk;	Regulatory risk; 1st	Regulatory risk; 2nd	Regulatory risk; 3rd
Political sentiment;	Political sentiment; 1st	Political sentiment; 2nd	Political sentiment; 3rd
Slowdown in emerging markets;	Slowdown in emerging markets; 1st	Slowdown in emerging markets; 2nd	Slowdown in emerging markets; 3rd
Refinancing issues;	Refinancing issues; 1st	Refinancing issues; 2nd	Refinancing issues; 3rd
Difficulties in obtaining financing;	Difficulties in obtaining financing; 1st	Difficulties in obtaining financing; 2nd	Difficulties in obtaining financing; 3rd
Tax and industry regulation (e.g. AIFMD);	Tax and industry regulation (e.g. AIFMD); 1st	Tax and industry regulation (e.g. AIFMD); 2nd	Tax and industry regulation (e.g. AIFMD); 3rd
Negative public perception of private capital;	Negative public perception of private capital; 1st	Negative public perception of private capital; 2nd	Negative public perception of private capital; 3rd
Investor disillusion with performance/strategic drift;	Investor disillusion with performance/strategic drift; 1st	Investor disillusion with performance/strategic drift; 2nd	Investor disillusion with performance/strategic drift; 3rd
High levels of competition (especially core infra);	High levels of competition (especially core infra); 1st	High levels of competition (especially core infra); 2nd	High levels of competition (especially core infra); 3rd
Lack of investor awareness	Lack of investor awareness 1st	Lack of investor awareness 2nd	Lack of investor awareness 3rd

1st

2nd

3rd

Regulatory risk;

Regulatory risk; 1st

Regulatory risk; 2nd

Regulatory risk; 3rd

Political sentiment;

Political sentiment; 1st

Political sentiment; 2nd

Political sentiment; 3rd

Slowdown in emerging markets;

Slowdown in emerging markets; 1st

Slowdown in emerging markets; 2nd

Slowdown in emerging markets; 3rd

Refinancing issues;

Refinancing issues; 1st

Refinancing issues; 2nd

Refinancing issues; 3rd

Difficulties in obtaining financing;

Difficulties in obtaining financing; 1st

Difficulties in obtaining financing; 2nd

Difficulties in obtaining financing; 3rd

Tax and industry regulation (e.g. AIFMD);

Tax and industry regulation (e.g. AIFMD); 1st

Tax and industry regulation (e.g. AIFMD); 2nd

Tax and industry regulation (e.g. AIFMD); 3rd

Negative public perception of private capital;

Negative public perception of private capital; 1st

Negative public perception of private capital; 2nd

Negative public perception of private capital; 3rd

Investor disillusion with performance/strategic drift;

Investor disillusion with performance/strategic drift; 1st

Investor disillusion with performance/strategic drift; 2nd

Investor disillusion with performance/strategic drift; 3rd

High levels of competition (especially core infra);

High levels of competition (especially core infra); 1st

High levels of competition (especially core infra); 2nd

High levels of competition (especially core infra); 3rd

Lack of investor awareness

Lack of investor awareness 1st

Lack of investor awareness 2nd

Lack of investor awareness 3rd

	1st	2nd	3rd
More active risk management;	More active risk management; 1st	More active risk management; 2nd	More active risk management; 3rd
The relative size of the infrastructure allocation;	The relative size of the infrastructure allocation; 1st	The relative size of the infrastructure allocation; 2nd	The relative size of the infrastructure allocation; 3rd
Establishing reliable performance metrics and benchmarks;	Establishing reliable performance metrics and benchmarks; 1st	Establishing reliable performance metrics and benchmarks; 2nd	Establishing reliable performance metrics and benchmarks; 3rd
Understanding and influencing drivers of returns;	Understanding and influencing drivers of returns; 1st	Understanding and influencing drivers of returns; 2nd	Understanding and influencing drivers of returns; 3rd
Pricing in the secondary market;	Pricing in the secondary market; 1st	Pricing in the secondary market; 2nd	Pricing in the secondary market; 3rd
The level of unfunded commitments;	The level of unfunded commitments; 1st	The level of unfunded commitments; 2nd	The level of unfunded commitments; 3rd
Establishing the right ‘allocation bucket’ for infra;	Establishing the right ‘allocation bucket’ for infra; 1st	Establishing the right ‘allocation bucket’ for infra; 2nd	Establishing the right ‘allocation bucket’ for infra; 3rd
Establishing optimal portfolio weightings across strategies/fund types etc.;	Establishing optimal portfolio weightings across strategies/fund types etc.; 1st	Establishing optimal portfolio weightings across strategies/fund types etc.; 2nd	Establishing optimal portfolio weightings across strategies/fund types etc.; 3rd
Fundraising extension requests	Fundraising extension requests 1st	Fundraising extension requests 2nd	Fundraising extension requests 3rd

1st

2nd

3rd

More active risk management;

More active risk management; 1st

More active risk management; 2nd

More active risk management; 3rd

The relative size of the infrastructure allocation;

The relative size of the infrastructure allocation; 1st

The relative size of the infrastructure allocation; 2nd

The relative size of the infrastructure allocation; 3rd

Establishing reliable performance metrics and benchmarks;

Establishing reliable performance metrics and benchmarks; 1st

Establishing reliable performance metrics and benchmarks; 2nd

Establishing reliable performance metrics and benchmarks; 3rd

Understanding and influencing drivers of returns;

Understanding and influencing drivers of returns; 1st

Understanding and influencing drivers of returns; 2nd

Understanding and influencing drivers of returns; 3rd

Pricing in the secondary market;

Pricing in the secondary market; 1st

Pricing in the secondary market; 2nd

Pricing in the secondary market; 3rd

The level of unfunded commitments;

The level of unfunded commitments; 1st

The level of unfunded commitments; 2nd

The level of unfunded commitments; 3rd

Establishing the right ‘allocation bucket’ for infra;

Establishing the right ‘allocation bucket’ for infra; 1st

Establishing the right ‘allocation bucket’ for infra; 2nd

Establishing the right ‘allocation bucket’ for infra; 3rd

Establishing optimal portfolio weightings across strategies/fund types etc.;

Establishing optimal portfolio weightings across strategies/fund types etc.; 1st

Establishing optimal portfolio weightings across strategies/fund types etc.; 2nd

Establishing optimal portfolio weightings across strategies/fund types etc.; 3rd

Fundraising extension requests

Fundraising extension requests 1st

Fundraising extension requests 2nd

Fundraising extension requests 3rd

	1st	2nd	3rd
Recruiting and retaining good quality people	Recruiting and retaining good quality people 1st	Recruiting and retaining good quality people 2nd	Recruiting and retaining good quality people 3rd
The ability to do more co-investments	The ability to do more co-investments 1st	The ability to do more co-investments 2nd	The ability to do more co-investments 3rd
The ability to do more direct investments	The ability to do more direct investments 1st	The ability to do more direct investments 2nd	The ability to do more direct investments 3rd
The use of funds of funds as intermediaries	The use of funds of funds as intermediaries 1st	The use of funds of funds as intermediaries 2nd	The use of funds of funds as intermediaries 3rd
The value of placement agents and gatekeepers	The value of placement agents and gatekeepers 1st	The value of placement agents and gatekeepers 2nd	The value of placement agents and gatekeepers 3rd
The value of emerging manager or minority programmes	The value of emerging manager or minority programmes 1st	The value of emerging manager or minority programmes 2nd	The value of emerging manager or minority programmes 3rd

1st

2nd

3rd

Recruiting and retaining good quality people

Recruiting and retaining good quality people 1st

Recruiting and retaining good quality people 2nd

Recruiting and retaining good quality people 3rd

The ability to do more co-investments

The ability to do more co-investments 1st

The ability to do more co-investments 2nd

The ability to do more co-investments 3rd

The ability to do more direct investments

The ability to do more direct investments 1st

The ability to do more direct investments 2nd

The ability to do more direct investments 3rd

The use of funds of funds as intermediaries

The use of funds of funds as intermediaries 1st

The use of funds of funds as intermediaries 2nd

The use of funds of funds as intermediaries 3rd

The value of placement agents and gatekeepers

The value of placement agents and gatekeepers 1st

The value of placement agents and gatekeepers 2nd

The value of placement agents and gatekeepers 3rd

The value of emerging manager or minority programmes

The value of emerging manager or minority programmes 1st

The value of emerging manager or minority programmes 2nd

The value of emerging manager or minority programmes 3rd

	1st	2nd	3rd
Structuring separate account arrangements	Structuring separate account arrangements 1st	Structuring separate account arrangements 2nd	Structuring separate account arrangements 3rd
The current level of management fees	The current level of management fees 1st	The current level of management fees 2nd	The current level of management fees 3rd
The current level of carried interest	The current level of carried interest 1st	The current level of carried interest 2nd	The current level of carried interest 3rd
Preferential terms for larger investors	Preferential terms for larger investors 1st	Preferential terms for larger investors 2nd	Preferential terms for larger investors 3rd
Waterfall arrangements	Waterfall arrangements 1st	Waterfall arrangements 2nd	Waterfall arrangements 3rd

1st

2nd

3rd

Structuring separate account arrangements

Structuring separate account arrangements 1st

Structuring separate account arrangements 2nd

Structuring separate account arrangements 3rd

The current level of management fees

The current level of management fees 1st

The current level of management fees 2nd

The current level of management fees 3rd

The current level of carried interest

The current level of carried interest 1st

The current level of carried interest 2nd

The current level of carried interest 3rd

Preferential terms for larger investors

Preferential terms for larger investors 1st

Preferential terms for larger investors 2nd

Preferential terms for larger investors 3rd

Waterfall arrangements

Waterfall arrangements 1st

Waterfall arrangements 2nd

Waterfall arrangements 3rd

	1st	2nd	3rd
Persistence (repeatable track record)	Persistence (repeatable track record) 1st	Persistence (repeatable track record) 2nd	Persistence (repeatable track record) 3rd
Team stability/retention strategies (including compensation)	Team stability/retention strategies (including compensation) 1st	Team stability/retention strategies (including compensation) 2nd	Team stability/retention strategies (including compensation) 3rd
Succession planning	Succession planning 1st	Succession planning 2nd	Succession planning 3rd
The presence of a proven operating model	The presence of a proven operating model 1st	The presence of a proven operating model 2nd	The presence of a proven operating model 3rd
Strategy consistency	Strategy consistency 1st	Strategy consistency 2nd	Strategy consistency 3rd
Engagement with ESG principles	Engagement with ESG principles 1st	Engagement with ESG principles 2nd	Engagement with ESG principles 3rd

1st

2nd

3rd

Persistence (repeatable track record)

Persistence (repeatable track record) 1st

Persistence (repeatable track record) 2nd

Persistence (repeatable track record) 3rd

Team stability/retention strategies (including compensation)

Team stability/retention strategies (including compensation) 1st

Team stability/retention strategies (including compensation) 2nd

Team stability/retention strategies (including compensation) 3rd

Succession planning

Succession planning 1st

Succession planning 2nd

Succession planning 3rd

The presence of a proven operating model

The presence of a proven operating model 1st

The presence of a proven operating model 2nd

The presence of a proven operating model 3rd

Strategy consistency

Strategy consistency 1st

Strategy consistency 2nd

Strategy consistency 3rd

Engagement with ESG principles

Engagement with ESG principles 1st

Engagement with ESG principles 2nd

Engagement with ESG principles 3rd

LP Perspectives Survey 2014

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* 1. Macro/structural issues affecting the infrastructure asset class and/or model - rank in order of importance:

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* 2. LP portfolio management – inside your institution - rank in order of importance

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* 3. LP investment strategy – inside your institution - rank in order of importance

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* 4. Fees and carry - rank in order of importance

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* 5. GP issues - rank in order of importance

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* 6. On a scale of one to five, to what extent is political uncertainty an issue in deciding where to invest? (Five - to the largest extent)