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alignment of interest

The stars of the smaller end of the buyout spectrum may one day have no need for external investors.
Finnish LP Katja Salovaara on how subscription credit lines have made life trickier for investors in private equity.
When it comes to the use of subscription credit lines, private equity firms will not be able to please all the LPs all of the time.
Clearer free structures are more important for LPs than a reduction in fees, research from State Street has revealed.
Credit Suisse’s Jonathan Abecassis responds to PEI’s assessment of GP-led fund restructurings and the need for a genuine ‘do-nothing’ option for LPs.
Top talent being enticed away by tech unicorns is pushing up salaries in private equity, says search firm Heidrick & Struggles.
The industry standard creates misalignment problems and needs rethinking for growth investors, says fund investor Dave Richards.
A higher carried interest ensures a better alignment between a GP and its LPs even if LPs end up paying more in fees.
The message to lawmakers is simple: do not harm a long-standing, proven catalyst for business success, says the industry body's president and chief executive.
Some 15% of private capital executives saw a decrease in their year-on-year base salary in 2017, significantly higher than the 1% who reported a similar change last year.
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