Private Equity Weighs Fee Change to Attract U.K. Pension Pots

Private equity managers are weighing whether to adjust typical fee structures in a bid to attract some half a trillion pounds ($680 billion) of U.K. retirement savings, a pool of capital whose fee cap has long deterred the industry.

A proposal put forward as part of a government consultation that closes Tuesday suggests that buyout shops could reduce their usual management fees of around 2% to attract more investment from pension plans, according to a document published by the Department for Work & Pensions. In return, they are pushing for greater flexibility around performance-related payouts, contingent on a minimum return ...