In a recent program sponsored by Strafford, Julia D. Corelli and Patrick J. Bianchi, partner and associate, respectively, at Pepper Hamilton, discussed the results of the 2018 fee and expense benchmarking survey their firm co‑sponsored with PEF Services and WithumSmith+Brown. The program also compared those findings with surveys from prior years to discern trends in private equity fee and expense allocations. This second article in our two-part series details the survey findings about co‑investment trends and ways managers are allocating expenses for outsourced services, as well as the growing reluctance of managers to disclose deficiencies to investors that are revealed by SEC examinations. The first article discussed the survey’s demographics and analyzed the key takeaways about the types of management and monitoring fees managers are charging, along with trends in the allocation of broken deal expenses. For additional insights from Pepper Hamilton attorneys, see our two-part series on fundamental structuring issues for investment advisers: “Separately Managed Accounts, Registration and Securities Laws” (Oct. 18, 2018); and “Taxation, Organizational Expenses, Redemptions, Publicly Traded Partnerships, Performance Fees and Alternative Structures” (Nov. 8, 2018).