Global consulting firm Watson Wyatt has appointed its senior consultant Sandi Orleow to the newly created job of head of private equity in Australia.
Orleow will work with Watson Wyatt's clients in identifying opportunities in private equity.
"Private equity is about high returns, which go hand in hand with high risks. The most important factor on private equity investors is to choose the right managers, those who are most able deliver, even when the markets turn down. This is why we have appointed Sandi, who will ensure that our clients have the right exposure to this asset class," Watson Wyatt principal and senior consultant Graeme Miller said.
"Going forward many of our clients will be investing in the sector. We already have a strong global team in private markets that are involved in building and managing portfolios. We are seeking to do the same thing in Australia," he said.
The announcement comes at the same time as the release of Watson Wyatt's report on private equity which showed that high fees are prevalent in the sector.
The report, Private Equity Explained, noted that private equity is the most expensive asset class.
Managers' fees stripped 5.40 per cent to 11.80 per cent from investors' returns. Depending on gross investment returns and fee structure, fund-of-fund products took out an extra cut of 0.75 per cent to 3.70 pr cent, stated the report.
'This means that private equity investors can conceivably be paying a minimum of 6.15 per cent a year for their investment to be managed, or anywhere up to 15.5 per cent a year,' the report said.
Performance variation between private equity managers was another finding from the report.
