Based on the search results, here are some common tactics that private debt managers may use to obscure or withhold information from investors:
- Complex structures: Private debt managers may use complex structures that can create substantial leakage for investors, making it difficult for investors to understand the fees and costs associated with their investments 1 .
- Asymmetry of information: There is often an asymmetry of information between investors and private debt managers, which can make it difficult for investors to fully understand the investment strategy and activities of the manager 2 .
- Lack of available data: The lack of available data in the private debt market can make it difficult for investors to evaluate the level of risk and who holds it 3 .
- Lack of transparency: Private debt managers may not provide adequate disclosure about their investment strategy, portfolio holdings, fees, and risk management procedures, which can make it difficult for investors to evaluate their activities 2 4 .
- Lack of compensation: Investors may not be compensated for the lack of transparency in private debt investments, which can be a warning sign for transparency issues 5 .
In summary, private debt managers may use complex structures, asymmetry of information, lack of available data, lack of transparency, and lack of compensation to obscure or withhold information from investors. Family offices should conduct thorough due diligence, ask specific questions, and collaborate with other family offices to ensure that private debt managers are transparent about their investment strategies and activities.