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.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…