The Private Equity Debate: Is it a Good Investment?
Capitalisn't
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Private Equity - Is Competition Driving Down Fees?
The lackof of transparency of the returns and the fees is a problem. Of 33 state pension funds with p investments, only six disclose their fees. An increasing portion of the earnings of the big private equity firms comes not from the 20%. It comes from the two %. As they've gotten bigger and bigger and bigger, a lot of their money comes from their asses under management,. So their incentives are no longer entirely alined with those of investors. And so if your incentive is to get the two % of f on assets under management, because now you're so huge that that's real money, you are going to put money into a bad deal. This is an industry that has undergone
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