Monday, July 26, 2010

Damning verdict on buy-out groups

Very easy to understand why this is happening. The lesson here is also relevant to anyone you give money to invest on your behalf. They pay themselves first.

The un-thought hope is that everyone gets paid. If that is not possible, the fund houses will pay themselves first. Sometimes in really adverse market conditions, nobody gets paid. Everyone may even be paying the market!

Damning verdict on buy-out groups
Private equity groups were accused on Monday of producing disappointing returns while charging their investors fat fees amid glaring conflicts of interest in one of the most scathing critiques of the industry published to date

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