Private Equity Royalty Talk Fees, Rights With Investors

Mar 31 2010 | 2:39am ET

Representatives of some of the most prominent private equity firms in the U.S. were set to meet with investors yesterday to discuss a series of demands presented by an investor group last year.

The meeting in New York, sponsored by the Institutional Limited Partners Association, was set to consider whether p.e. firms should offer lower fees and more rights to investors, Bloomberg News reports. ILPA in September offered its members—215 institutional investors with $1 trillion in p.e. assets—a 17-page list of demands it suggested making to buyout firms when negotiating investment terms.

Joseph Dear, chief investment officer of the California Public Employees’ Retirement System, moderated the discussion, which was scheduled to include Avenue Capital founder Marc Lasry, Carlyle Group founder David Rubenstein, KKR general partner Scott Nuttall and TPG founder James Coulter. Apollo Management was also considering sending a representative.

In addition to ILPA’s demands and p.e. fees, discussions on the regulatory environment were also on the agenda.

The meeting is another sign that private equity firms are taking ILPA’s guidelines seriously. The Wall Street Journal reported earlier this month that at least three buyout firms had asked lawyers to vet the antitrust implications of the ILPA outline.


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