Survey: More GPs Likely to Raise Fees in 2024 as Confidence Improves

A recent survey of General Partners and asset managers revealed that the impact of economic uncertainty and recessionary concerns on overall business and alternative investment strategy is decreasing, according to the newly released 2024 Dynamo Frontline Insight Report: Trends, Challenges and Insights from Global General Partners (GPs).

Notably, the latest quarterly survey by fintech provider Dynamo Software indicates financial volatility is less likely to impact GP’s decision-making on whether to raise a fund. One year ago, one in three GPs surveyed said economic uncertainty was making forthcoming fundraising activity too hard to project. This dropped by 11 points in Dynamo’s most recent survey.

The findings suggest there is a perceived rebalancing of power in the GP-LP dynamic as a recession seems unlikely to materialize and funds may overperform in 2024. A significantly larger percentage of 2024 survey participants expressed an intent to increase management fees over the next 12 months, with 20% expecting to raise prices this year, compared with just 5% last year.

Read the rest of the article at Alternatives Watch here.