Private Markets Due Diligence:


The fourth annual eVestment Private Markets Due Diligence Survey of investors and fund managers, produced in association with Nasdaq, uncovered the key perspectives and practices of the industry that are influencing fundraising, performance analytics and manager selection. Explore some of the highlights of the survey in this infographic.


Competition for Deals Ranks Top of Mind

When asked to indicate their level of concern about the impact of a range of factors on the private markets industry, investor and manager respondents both voiced their highest level of concern about competition for deals. Competition for deals was only rated the fourth highest concern in our 2018 survey, but topped this year’s list. This rise in concern could suggest that investors and managers are beginning to realize the effect of record fundraising levels flooding the market with available capital and an ever-growing list of fund managers chasing the same assets. Investors and managers also shared similar levels of concern about the prospect, and impact of, a market correction on the industry.

Investors & Consultants:

#1: Competition for Deals

#2: Private Company Valuations

#3: Market Correction

Fund Managers:

#1: Competition for Deals

#2: Market Correction

#3: Competition for LP Commitments


Investors Expect to Place Increased Focus on Portfolio Monitoring

Driven by their top concerns, which included the prospect of a market correction, 45% of investors expected to increase their focus on monitoring existing investments. This indicates a similar outcome to the last financial correction, when investors significantly increased their demand for information on existing portfolios in an effort to better understand their risks and exposures. On a positive note, while 16% of respondents suggested they would be reducing the number of new commitments made in 2019, 28% expected to increase new commitments.


expect to increase their focus on
monitoring existing investments


expect to reduce the number of
new commitments made in 2019


expect to increase the number of
new commitments made in 2019


Investors and Fund Managers Misaligned on Plans to Attract and Commit Capital

Nearly 3 out of 4 Fund Managers plan to increase their investor base while only 1 out of 4 investors plan to increase their fund manager relationships.

Fund Manager
Fundraising Plans

Investor & Consultant
Commitment Plans


Managers Underestimate the Importance of Analytics in Due Diligence

One stark contrast identified in the findings was on the level of importance of Loss Ratios. This was ranked second by investors, yet only fourth most important by fund managers. Over two-thirds of investors, 68%, indicated Loss Ratios as very important in the due diligence process versus just 32% of fund managers. In fact, a full third of fund managers ascribed no importance to Loss Ratios.

Investors 68%
Fund Managers 32%

ESG & Diversity Policy Implementation Outstrips Investor Weighting

Environmental, Social and Governance (ESG) Investing and Diversity are two topics that have risen in prevalence within asset management in recent years. Our survey explored to what extent private markets firms are deploying formal policies and actions, and how investors’ commitment decisions are influenced by these.

For ESG, 62% of fund managers have a formal policy at the firm level and 40% at the portfolio deal level. While the numbers for Diversity policies are lower, they exhibit a similar pattern: more have implemented or enforced these policies at their own firms than their portfolio companies.

Firm Level Policy 62%
Deal Level Policy 40%

Investors Eye Social Media as New Information Source

Interestingly, while a third of investors placed no importance on social media reviews, some do factor this into their due diligence process. As firms become more digitally savvy, transparent, and the industry moves through generational shifts, this could well be a factor that increases in importance in the years ahead.

Read the full findings from the 2019 Private Markets Due Diligence Survey:

About eVestment Private Markets
eVestment Private Markets is a market intelligence and performance analytics solution delivered by eVestment, a Nasdaq company. eVestment Private Markets serves both LPs and GPs within due diligence and investor relations. Our sole focus is providing our clients with the information they need to make more informed decisions.