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Animal Spirits Podcast cover image

Talk Your Book: Private Investing for Fiduciaries

Animal Spirits Podcast

NOTE

Ensuring Longevity and Stability in Fund Investments

The conflict between a sponsor and a fund can arise from deal fees paid to the manager without accruing to the fund, leading to a focus on deals that may not benefit investors. Other conflicts may stem from relationships between fund entities and questionable lending practices. Factors like appropriate leverage levels, the strength of the management team, and continuity play a crucial role in the success of a fund over its lifespan. Institutional investors like endowments and foundations, despite having significant capital, can be demanding due to their focus on quarterly performance and pressure from various stakeholders.

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