GLOBAL – Institutional investors investing in private equity, real estate and infrastructure are increasingly concerned about the lack of information marketers provide at the initial marketing stage, a survey has found.

According to a study by Preqin, 66% of the 100 investors surveyed rated the full terms and conditions sections of initial fund marketing documentation as average at best, while 72% believe the information presented by fund marketers relating to performance track record to be average or worse.

The outcome of the survey could have major consequences for alternative fund managers, Preqin argued, as the most common way investors find new opportunities is via a direct approach from a fund manager, with 61% of institutions using this as part of their investment process.

The lack of information provided, together with a crowded market of more than 1,900 funds, means making it through the first cut can be one of a fundraiser's most difficult tasks.

Additionally, 52% of institutional investors surveyed consider it important or very important to be able to directly compare initial fund documentation of various vehicles with each other.

Preqin said: "Once fund-marketing documents have gained the attention of an institutional investor, investors will then dive more deeply into the materials provided by the fund marketer.

"At this early stage, being able to make comparisons between the key metrics of similar offerings is necessary for many investors."

But the majority of investors surveyed find this process of comparing initial fund documentation difficult.

Stuart Taylor, head of investor products at Preqin, said many fund marketers failed to get past the hurdle of initial fund documentation because their marketing materials did not align with investors' investment criteria, or were lacking crucial data, overloaded with unnecessary information and – particularly in relation to track record – viewed as misleading.