GPs Adopting a More Optimistic Outlook, Says New Survey

GPs surveyed for the 2024 Dynamo Frontline Insight Report: Trends, Challenges and Insights from Global General Partners, indicated an apparent reduction in the effects of financial volatility on planning. One year ago, one in three GPs surveyed by private markets software specialists Dynamo Software said economic uncertainty was making forthcoming fundraising activity too difficult to project. This dropped by 11 points in the most recent survey.

GPs also appear to sense a rebalancing of power in the GP-LP dynamic following a recession that never materialised and the potential for fund overperformance in 2024. Compared to 2023 respondents, a significantly larger percentage of 2024 survey participants indicated they will increase their management fees over the next 12 months. Some 20% meanwhile said they expect to raise prices this year, while just 5% planned to do so last year.

Expectations for higher fee income may have influenced how GPs answered other questions related to the cost of doing business. Some 92% of GPs said their tech budget would either increase (50%) or stay the same (42%). Notably, “overall cost” dropped year-over-year from third to fourth place in the ranking of most important factors to consider when implementing new technology. “Creating efficiencies and optimising workflows” retained its position as the most important tech implementation factor in 2024’s survey.

Read the rest of the article at Private Equity Wire here.