Chart of the Week: Fees present largest area for improvement to LPs

Some things never change. LP frustration about fees is the perennial complaint in private equity. In a recent Preqin study, two-thirds of LPs ranked management fees as the issue they’d like to see improved, followed by how GPs charge carried interest, and increased transparency at the fund level. One LP remarked, “Management fees should cover costs only with no profit. Performance should be based on properly calculated alpha generated.”

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