If Mitt Romney Gets Elected PE Firms Returning 30% IRRs for Teacher's Pension Funds?
There seems to be a gap in the amount that investors in PE firms, Limited Partners, are getting back on their returns. Instead the PE shops are earning management fees that outweigh the actual returns that the investors receive. With all the recent PR issues and discussion regarding PE firms it just seems like Blackstone: “where investing performance was meh but revenues were buoyed by asset inflows and management fees. “ will soon be earning more if Mitt Romney is elected president.
Furthermore, the Chief Investment Officer of Yale’s Endowment fund, David Swensen, points out that: “arguing that acting as a fiduciary for other people’s money and maximizing profits are incompatible activities.” Overall, I see that they don’t care very much, and I am okay with people managing money for a profit. However from a “PR perspective it sure looks better when both the managers and the managees get some of that profit”.
What is the prevailing opinion on this? Any thoughts?
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