1. Outsourcing can give rise to a number of potential benefits. It is important, as part of the outsourcing process, to identify the desired gains so that these can be measured. The need to free up time for policy and strategy issues by removing operational constraints is often cited as a reason. Some companies have also used outsourcing as a means to accessing skills and technologies, such as internet access for members. Cost can be a factor although it is rarely the sole consideration. Management of risk and sharing of best practice (particularly relevant at times like this) may also feature.
2. Internet access is still increasingly popular and it will be interesting to see if this trend continues as members start to take on more responsibility, as a result of simplification, for their retirement provision. However, internet access is only as good as the data and back-end systems that support it and therefore there is also more focus on straight through processing as this minimises risk and improves member servicing. Again, this can only achieve benefits where it is supported by a workflow system which covers scheme as well as individual member events.
3. There is no ‘one size fits all’ answer to this question. An organisation considering outsourcing all or part of a function should initially carry out a review so that all factors which might influence the way forwar are considered. Only when this review is complete will the organisation be clear on the nature and extent of the service to be outsourced and the overall objectives of the contract. Where these various factors come in the company hierarchy will be different for each organisation.
4. Presentation of costs can vary significantly from provider to provider. To get a true comparison, the invitation to tender should contain a cost grid so that all organisations have to present their fees in the same way. Organisations should satisfy themselves that the costs cover the services they require performed to a level that is acceptable to them. They need to be alert to additional or hidden costs. Benchmarks should measure the aspects of service that matter to them and not solely response times. These could include member feedback, rework rates and so on.

1. Benefits include:
   - Pan-European pension schemes will become a reality from 23 September 2005 with the potential to appoint a single administration supplier across Europe;
   - Offshore outsourcing completed successfully by other sectors of the financial services industry over recent years resulting in reduced operating costs provides the catalyst for the pensions industry to follow suit;
   - Web integration with ERP solutions will provide the ability to seamlessly integrate pensions administration services;
   - End-to-end process automation through the use of technology will reduce manual intervention in exchange of data thus decreasing operational risk and costs;
   - Integration with flex benefits and administration will meet the increasing need in DC schemes to flex contributions.
2. The web continues to be the greatest enabler in delivering improved access to information on benefits and the capability to complete transactions. Member self service with real-time access is gaining momentum. Online facilities for employees, including online enrolment, ability to set contribution rates and update fund choices with data files seamlessly interfaced to company payroll systems without manual intervention are now a reality. Online access to greater information about their scheme, such as AVC contribution patterns, provides trustees with the information they need to make informed decisions and produce targeted communications to their members. Ultimately, technology enables trustees to raise the profile of their schemes resulting in maximum returns for the investment made.
3. The administration model is often driven by major change such as legislation, staff departures, system replacement or changes in a company’s strategic approach to outsourcing. Historically, pensions administration was generally either fully in-house or outsourced, and for some schemes this is still the right approach. Increasingly, with the recent advent of technology, medium-sized and larger schemes are seeking a partnership model that splits pensions administration roles to meet existing administration structures and business objectives – the co-sourcing model. ASP introduces a further alternative providing software over the web and removes the need to replace, upgrade and maintain existing systems. For schemes with the skills, resource and expertise to administer their scheme in-house this provides a viable alternative.
4. If pensions administration were a commodity purchase, it would simply be a matter of selecting the cheapest provider. Whether an administration provider offers better value for money involves assessing the relative risk and reward through analysis of the operational infrastructure that supports the administration. A thinner infrastructure may result in lower overheads and pricing structure but at what cost? Trustees need to compare apples with apples to ensure the services being offered by the different providers are comparable, thus minimising ‘out of scope’ costs. Effectively monitoring the relationship requires trustees to be aware of the key administrative responsibilities outlined in the service level agreement.

1. Pensions administration outsourcing has long been on many companies’ business agendas. And for good reason. As companies search for increasingly flexible answers in an ever more complex pensions environment, third-party administrators offer the sort of solutions that no business can ignore.
   Strategically, the message is quite straightforward. Whatever the grounds – be it cost, technology, expertise or the availability of management time – or more likely a combination of these, companies, both large and small, increasingly recognise the need to concentrate on their core business activity. In other words, to apply their resources to what they do best. And for most companies, that simply isn’t pensions.
2. Effective and flexible pensions administration demands technological development. Technology that even five years ago was innovative is now commonplace throughout the administrative process.
   Internet technology, for instance, is revolutionising communication with schemes and their members – web-enabled access now provides near instant 24/seven responses where once days were required. At Capita Hartshead, scheme trustees, employers and members alike can now communicate with their providers and access individual benefits online through our latest offering, ADDvantage. What is more, this applies to defined contribution and defined benefit arrangements, and all from the same platform.
3. Each scheme will have its own priorities and requirements, which will almost certainly include a combination of cost, technology, systems and staff expertise. Innovation is for many clients one of the key attributes, while Capita Hartshead’s Pension Scheme Administration Survey for 2005 suggests that quality standards and technical skills are top of the list for most schemes when choosing a third-party administrator.
   And as a scheme’s priorities and requirements are likely to change over time, the flexibility of the provider is crucial. Schemes need to have confidence that they are entering an outsourcing partnership that will not just satisfy short-term needs but will provide long-term stability and service excellence.
4. Fixed costs can be easily monitored, but it is important that regular contact between client and provider is maintained to enable prompt scrutiny of any additional costs incurred. This is particularly important during the implementation process, which will inevitably involve significant costs, both in terms of capital expenditure and staff time.
   Quality of service is more difficult to benchmark and traditional methods such as service level agreement (SLA) monitoring can only be part of the picture. Schemes may wish to undertake periodic benchmarking exercises, to ensure costs and service levels remain competitive. Above all, the provider must develop an open and honest relationship with the client so that issues, whether of cost or service, can be resolved immediately.

Events of the last year or so have made for a traumatic time for third-party pension administrators. Laverne Hadaway looks at what has happened and whether they have helped to shape outsourcing trends

With the increasing pressure of government legislation and internal business requirements, pension providers have to change the way they operate and technology will play a vital role in this move, says Phill Coglan

Dealing with simplification will be a significant challenge for pension schemes, so why, says Leonie Jones, are so many of them leaving member communication to the last minute?

Pensions reform represents a major challenge to administrators but if the change is planned for, well managed schemes can expect benefit from the resultant opportunities, says Gary Evans

Shared service centres are providing a real opportunity for medium-sized and large companies to integrate their pensions delivery into a wider human resources service delivery model, says Jon Tye

Outsourcing can seem like a voyage into the unknown, but properly planned, it offers rich rewards, says Stuart Heatley

This month’s PM includes a fascinating roundtable discussion on the likely developments resulting from the greater freedom for pension funds to invest in property from next April onwards.

Politicians must stop dancing around the issue of compulsion and enter into serious debate before it becomes unavoidable, said David Harris, managing director of Tor Financial Consulting, in an address to an Association of British Insurers (ABI) conference.

New research from Hargreaves Lansdown (HL) has shown that men and women are not only different, but that this has has an impact on the investment choices they make for their pensions.

In any analysis, the largest single group of voters at this election are those of, or near, pensionable age, It is no surprise that the parties have spent much time focusing on the needs of this group, says Iain Anderson

The Inland Revenue has reached agreement with its counterpart in the US over the issue of double taxation for insured pension funds and pension funds investing through unit trusts.

Asset.tv, an independent, interactive channel covering investment management, is expanding its coverage to include institutional investors and their advisers.

RREV, the corporate governance body jointly controlled by the NAPF and ISS, has launched a weekly news alert for its clients, providing schemes with a an early warning of potentially contentious issues.

Following the success of the financial adviser’s fee payment arrangement for personal pensions, Scottish Life has expanded it to cover their retirement solutions range of company-based products.

Now here’s a funny one. I’ve just been reading on the BBC News website about a bloke in Australia who reported a crime he saw happen in Devon. The weird thing is he was in Boorowa, New South Wales, at the time he saw it. It was nothing paranormal though, he just happened to be viewing a live webcam of the esplanade in Exmouth via his broadband

Ros Altmann, campaigner and independent policy adviser on pensions and investments, was the guest speaker at the presentation of the Pensions Management Provider Awards 2004, held recently at London’s Prism restaurant.

Investor interest in index tracking funds remains high, as for the second year in succession funds under management (FUM) in UK managed funds have grown substantially faster than the indices that they track.

The Financial Services Authority (FSA) has published draft rules on the use of soft commission and bundled brokerage arrangements by investment managers.

Demand for professional and independent trustees is set to increase, according to the findings of this year’s independent trustee survey (see page 51).

Three life offices are looking to outsource administration of their open and closed books of life and pensions policies either later this year or early in 2006, according to Mike Eaton, managing partner, financial services, at Unisys.

Threadneedle Asset Management has selected FPS to replace DC Solutions as the administrator for its defined contribution (DC) business.

Pan Trustees has launched Multiplan, an innovative new multi-employer plan structure for schemes of 50 to 1,000 lives.

Hogg Robinson has sold its Benefits and Consultancy Services (BCS) companies to Duke Street Capital in a management buy-out so it can focus solely on the corporate travel market.

Winterthur Life UK’s IFA pre-A-Day planning workshops this month have provided an opportunity to discuss how to structure Sipps in the most cost-effective way.

John Scott & Partners has produced a guide entitled Planning for Pensions Simplification which considers who should be taking action in light of the forthcoming changes and what steps they should take both before and after A-Day.

There are three circumstances under the simplified pensions legislation when protection of pre A-Day rights is scheme-specific and is lost if the member transfers out of the scheme, unless the transfer is a block transfer.

Pension providers are worried they cannot meet the A-day deadline, a new survey has revealed.

Six major pension schemes have joined together to produce a unique A-day model called PensionMentor intended to ‘outspecify’ other A-day models on the market.

A-day is now less than a year away and, if you haven’t already started, now is the time to be thinking about planning for implementation of the simplification proposals. While it might be tempting to start drawing up a project plan straight away, it is important to set the scope of what needs doing first.

Suffolk Life has hit out at the latest Department for Work and Pensions (DWP) proposals to continue prohibiting protected rights being invested in self-invested personal pensions (Sipps), calling them “unreasonable” and contrary to the simplification regime.

Alexander Forbes Financial Services has published a free guide for directors and senior executives on how to benefit from the A-Day pension changes.

Proving that the Inland Revenue does listen to industry concerns, the Finance Act 2005 included amendments to the pensions simplification measures contained in the Finance Act 2004. One of these relates to the payment of tax-free lump sums.

The post-simplification investment regime will lead to a boom in property investment through pension funds, according to property, tax and self-invested personal pension (Sipp) experts at this month’s Sipps and property roundtable (see pages 69-76).

As I have outlined before, one of the key changes to be introduced by the new simplified pensions regime is ‘alternatively secured pension’ (ASP) and the fact that this obviates the need to buy an annuity at age 75. It appears to allow any surplus funds on death after age 75 to be passed down the generations.

The financial services industry witnessed a 61% increase in levels of business being conducted electronically in 2004, according to the latest Focus Quotient.

Standard Life’s adviser extranet adviserzone.

Despite increases in electronic transactions, a lack of data standards is holding back the development of e-commerce.

Government should ensure retirees consider the vital questions before purchasing an annuity, as the right decision could make pensioners better off for the rest of their lives, says Ros Altmann

David Norgrove, chairman of the Pensions Regulator, says he is keen to be more of a mediator, than a heavy handed copper, acting as a bridge between companies and their pension schemes. He talks to Daniel McAllister

Alan Johnson, secretary of state for work and pensions, talks to Gregor Watt about Labour’s pans for the future of pensions

The third annual Pensions Management Technology Awards for 2005 is under starter’s orders.

Very shortly the Pensions Management Scheme Awards will be opened for 2005. Now while it may not be quite the time to be planning your outfit for what is the pension industry’s equivalent of the Oscars, but you really should be thinking about getting your hands on the entry form.

Fixed income is being called upon to fulfil specific objectives and, as such, investment managers need to look at the asset class in a different way. New instruments and techniques are enabling managers to create more dynamic portfolios and, crucially, pension schemes are granting managers more freedom to run their mandates. Like modern building engineers, fixed income managers must seek new ways to improve the quality and performance of their structures.

Despite being seen as the poor cousin to headline-grabbing active management returns and its potential alpha generation, index tracking still has a vital role to play in any fund’s overall strategy, says Gregor Watt

Does the decline in DB schemes and the increasing emphasis on liability-matching techniques, plus the emergence of enhanced indexation mean index funds have had their day, asks Barry Holman

PM: I would like to start by asking you to explain what you mean by a small scheme and what the primary areas of concern are for small schemes.

Matters relating to pensions must be recorded explicitly if they are to hold up legally. Oliver Reece and Chris Jackson (below, right) outline a case in which shorthand led to a costly mistake that had to be resolved in court

The influence of the Myners report, poor investment markets and the consequent deficits suffered by pension schemes are all responsible for the increased use of independent trustees, says Pádraig Floyd

1. Infrastructure assets such as roads, rail, airports, water utilities, roads, electricity and gas transmission networks can be attractive investments for those with a longer time horizon, such as pension funds.
   The long-term, essential nature of these assets provides stable, predictable and sustainable consumer demand and cashflow along with a relatively low volatility of return. They also have low correlation to other asset classes, which helps to truly diversify a portfolio. These sustainable yields, typically inflation-linked, are appealing for pensions funds because they provide a match for a defined benefit plan’s liability profile, along with a risk-adjusted return well in excess of available alternatives.
   In more mature markets, such as Australia and Canada, data is now available to show that infrastructure is providing pension funds with consistent out-performance against listed equities, coupled with annual volatility closer to that of bonds.
2. As an asset class, infrastructure provides stable absolute returns under most market conditions. It is the ultimate defensive investment, largely insensitive to the economic cycle and uncorrelated to other asset classes.
3. As explained above, assets providing essential community services present attractive opportunities as alternative pension fund investments. The long-term, sustainable nature of the assets and their cash flow is a strong addition to a diversified pension fund portfolio.
   The best way to access these opportunities depends on the internal resources and expertise of each investor as well as each institution’s general investment model (many funds may only consider general, pooled investments). In order to maximise equity returns, infrastructure assets require active management and extensive specialised sector expertise.
   Investing through specialised infrastructure funds provides the dual benefit of accessing long-term sustainable characteristics of the underlying assets, supported by specialist infrastructure asset management. In the case of Macquarie’s family of infrastructure funds, asset management teams are made up of industry specialists – previously involved in running airports, utilities, telecommunication etc – working alongside financial and regulatory experts. Further, a managed fund would typically provide exposure to a diversified portfolio of assets (and associated returns), which would be difficult to achieve through direct investment.
4. In terms of geographic diversification, UK pension funds should consider infrastructure assets in the same way as they do any other asset class. Additional factors to consider include:

• Availability of well priced opportunities in the more mature markets, such as the UK, where privatisation of infrastructure assets is well advanced. An astute investor might consider emerging opportunities on the continent or in the EU accession countries, for example.
• On the other hand, the long-term nature of the asset class and the reliance on long-term contracts and government regulation may favour jurisdictions with mature, transparent and reliable political, legal and regulatory regimes.

1. For many pension schemes, the appeal of PFI equity is likely to be as part of the toolset of alternative assets that can be used to increase yield and enhance risk diversification. In particular, PFI equity offers a way to enhance returns meaningfully without assuming the high risks often associated with investment in venture capital funds or management buy-out funds.
2. PFI public bond issues offer long-dated yields at a premium to equivalent gilts, and could be considered for inclusion in a pension fund’s fixed income portfolio. Equity investment in PFI projects offers excellent risk-adjusted returns and could be considered as a stand-alone investment as part of a pension scheme’s allocation to alternative assets.
3. PFI markets offer a variety of investments with differing risk and return profiles. Decisions about whether to invest in PFI equity or bonds, and whether to invest in the primary or secondary markets (or both) will naturally depend on each specific scheme’s risk and return objectives and the shape of its existing portfolio of alternative assets. PFI bonds provide the lowest risk returns, while PFI equity provides higher returns but requires the selection of a specialist fund manager. PFI projects that provide for the provision of traditional assets – such as office buildings, schools, roads and fire stations offer the lowest risk.
4. The UK market has immediate attractions for UK pension schemes in that it has the greatest volume of investment opportunities and sterling-denominated investment instruments.  Other European Union countries are beginning to embrace PFI as are other nations, including Japan and Canada. The size of the global PFI market is therefore set to increase strongly over the coming decades, and PFI is likely to become an established asset class for pension fund allocations.

1. PFI projects are long term, typically with a 25 to 30 year investment horizon, which makes them an obvious target for pension fund investment. However, there are two very distinct phases to a PFI project.
   The bidding and construction phase: characterised by relatively high risk and expected return, with investors typically looking for returns of around 15% a year. Investment in this phase can represent an attractive alternative to private equity investment.
   The operational phase: characterised by significantly lower risk and return expectations of around 10% a year. While such investment opportunities appear to represent very attractive alternatives to gilts and corporate bonds for matching pension liabilities, such returns are only available through very high financial gearing (typically around 90%).
   So, investors must be cautious. Without financial gearing, returns fall to around 6% to 7%, similar to the returns available from traditional long-lease properties with high quality tenants.
2. Provided the risks of any financial gearing are understood, operational or secondary phase PFI investment could be considered as part of a liability-driven investing approach. The attractions of wider infrastructure opportunities, including construction or primary phase investment, should also be considered alongside other alternative investments, in particular, private equity.
3. Of the available infrastructure opportunities, secondary investment in PFI projects offer the best liability match for pension schemes, in view of the largely government backed predetermined income. Because the risk involved can be significant, particularly with primary or construction phase investments, exposure to a wide a range of PFI projects within the scope of the mandate will be desirable.
4. If PFI investments are made for liability- matching purposes, there is clearly attraction in limiting investments to the UK. As a stand- alone alternative investment then a geographically diversified portfolio has attraction, although any political risk involved needs to be carefully considered.

1. Infrastructure investing in general offers alternative sources of returns which help to diversify the overall pension fund portfolio, as returns from infrastructure investing are lowly correlated with other return-seeking investments (such as equities). The immaturity of the market offers an advantage to first movers. That said, there are certainly issues that investors need to be aware of. These centre around political, regulatory, liquidity and operational risks, as well as the high costs associated with this type of investing.
2. Even though some types of infrastructure investing have some liability-like characteristics, we think the risks involved make this more of a stand-alone investment aimed to generate additional returns for the pension fund, rather than one to minimise risks associated with the liabilities.
3. Infrastructure investing is commonly split into two phases: primary infrastructure investing (start-up phase with higher risks and higher expected returns) and secondary infrastructure investing (operational phase, more stable income, lower risk). While primary infrastructure investing offers the highest potential gains, secondary infrastructure investing has somewhat more bond-like characteristics, often including a link to inflation and provision of long-term cash flows, while still offering attractive expected returns. It will depend on the specific pension fund requirements (such as maturity of the scheme, funding position and governance budget) which (if any) of the two options is most suitable.
4. Although growing, the UK PFI market is still very small and illiquid and with only a small number of credible fund managers operating in this area – the market won’t be yet able to accommodate a big flow of pension fund money. In addition to researching PFI fund managers, Watson Wyatt has also carried out substantial research into other infrastructure investments globally and the fund managers that offer these type of investments. We certainly see attractions in some of these areas, but note that these need to be reviewed on their merits as regulatory, investment and liquidity risks vary substantially across the different countries and opportunities.

Although the government has signed around 600 separate private finance initiative contracts, the largest pension funds have found few compelling investment vehicles, says Will Hadfield

PFI equity offers a way to enhance returns meaningfully without assuming the high risks and some of the earliest investors have been UK local authority pension funds. Guy Pigache reports

We need to look at administration delivery in its many guises and to understand whether or not it is good or bad, whether or not it does what it says on the tin and, importantly, whether or not it is

getting better, says Margaret Snowdon

Jim Doran presents The Bard’s top 10 tips to the troubled trustee

Many ombudsman complaints arise as a result of either the failure to provide information, delay in providing the information, or the provision of incorrect or misleading information. Jason Shaw reports

Pensions Management: Are we are going to see a real boom in people using Sipps to invest in property from April 2006?

Using salary sacrifice correctly we can boost members’ gross pension contributions by over 30% a year, reducing the pensions gap by £5.6bn at no cost to employers, argues Robert MacGregor

Under the Finance Act 2004 it will be possible for members to take more tax-free cash, but the new legislation is set to increase some of the anomalies in the system. says Bhavna Kumar

1. Structurally, we see the next generation of LDI as containing a mix of cash, bonds, fixed income derivatives plus alpha and beta products. The genuine LDI component will consist of the former categories, with alpha and beta being supplied by a range of diversified growth assets.
2. A big increase in the governance budget might be required to manage such a structure, at least initially. Generically, we see many schemes as having a loosely managed risk mandate which operates within the governance budget. Next generation LDI approaches are more tightly risk managed, but potentially step outside of many existing governance budgets.
3. The availability of liquidity at ultra-long durations in the fixed income derivatives market makes such hedging a real possibility. We do understand the problems associated with model risk, but are nevertheless keen to progress adaptive solutions which reduce investment risk without raising the spectre of unnecessary model risk. However, it is always sensible to remember the uncertainty that will remain due to demographic factors.
4. We do believe that such products will encourage the use of LDI and we applaud these. Investing in pooled funds that are transacting strategically, directly with an investment banking counterparty is a question which we find needs to be answered by trustee bodies on a case by case basis.

1. Liability-driven investing (LDI) is about establishing a transparent link between liabilities and assets and minimising uncompensated risks. For schemes looking to outperform their liabilities, a wide range of asset classes and strategies will help get the best return for the risk taken, including government and corporate bonds, equities, hedge funds, commodities, swaps and potentially other derivatives.
   Schemes with a low risk appetite, and hence lower expected returns, may restrict investments to bonds and/or swaps. However, for most schemes, LDI will lead to more asset classes and a greater use of active returns – this diversification brings risk reduction without reducing expected returns.
2. An LDI approach means a much closer relationship between trustees and their various advisors. In particular, actuaries, investment advisors and fund managers need to communicate much more closely.
   The benchmark for an LDI scheme is to achieve returns in line with, or ahead of, their liabilities. The governance of schemes needs to ensure effective processes are in place for monitoring this objective and the risks taken to achieve it.
   Monitoring requires a detailed understanding of the liabilities and how their value will change in response to changes in market conditions. Monitoring is often best performed by an LDI manager with the technology and systems to perform this analysis. Trustees may also ask their investment consultants to undertake independent checks to ensure that the calculation methodology is appropriate and robust.
3. LDI approaches should be aware that the benchmark depends on non-investment assumptions, such as longevity, that cannot be predicted with certainty. As such, there are some risks that cannot be removed completely in the capital markets.
   However, this does not invalidate the concept of LDI, but suggests that it is not worth incurring significant costs in achieving what is likely to prove to be spurious accuracy in liability matching. For most schemes, the LDI objective is going to be to outperform the liabilities, and the risks from demographic assumptions proving to be wrong will remain only a part of the total risk.
   Even schemes that are currently 100% funded on a realistic set of assumptions may wish to try and outperform their liabilities to build a cushion against unexpected improvements in mortality.
4. The inaccuracies inherent in liability forecasts can mean that segregated solutions do not always bring benefits. An appropriate set of pooled funds can still produce a bespoke solution that is a good fit for the liability profile in a very cost-effective manner.
   In this way, pooled fund products can allow smaller schemes to access techniques that otherwise would not be available to them, eg the cost-effective use of swaps for removing unwanted risks and the use of portable alpha to introduce active returns from other asset classes onto a liability benchmark.
   They also allow larger schemes to implement LDI investments at lower cost and lower risk, eg through better diversification of counterparty exposure in swaps transactions.

Last month’s Q&A on liability-driven investments wrongly transposed the answers of Hugh Cutler and Richard Boardman. Here are their answers correctly attributed to them

Pension funds and their custodians have a fundamental responsibility to safeguard the members’ assets and maintain the confidence in and reputation of the scheme, says Ann Doherty

Peter Williams, head of industry development, Aegon UK, answers this month’s G60 questions on simplifications, posed by the following case study

Peter Quinton takes a look at some of the areas advisers may well have to give direction to clients – one way or another – before it is too late

Although the demand for data on companies’ environmental performance exists, disclosures are not comprehensive or adequate for shareholders to properly assess environmental risks or opportunities, says Simon Thomas

Former NAPF chairman and senior Mercer consultant Peter Thompson has followed in the footsteps of three other former NAPF chairmen by joining Bestrustees as an independent trustee.

The Pensions Management Institute (PMI) has appointed its vice president Penny Green to become its president for 2005-2006.

Actuaries and pension specialists Wolanski has responded to substantial growth in their property-related Sipp business by appointing Nick Hodgson in the new role of specialist property consultant.

Former Watson Wyatt investment consultant Stephan Breban has launched specialist consultancy City Capital Partners to cater for the growing demand for independent advice on private equity.