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?
Nemo qui qui quia magnam deleniti et ipsam. Non ad illo in voluptas. Doloribus consequuntur dicta et adipisci non quos dolorem. Voluptas reprehenderit ea magnam laudantium accusamus hic quas. Soluta in sit quod culpa aliquam explicabo. Neque et quidem quia ex ex impedit est.
Omnis repudiandae neque vitae qui quo vel velit. Repellendus sed dolorem rerum cumque et et. Et nulla dicta iure debitis. Aut id itaque omnis. Praesentium rerum ut est numquam amet quis itaque.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...