Alignment of Interest

In the final instalment of a three-part series, long-time limited partner turned consultant Ray Maxwell reflects on shortcomings of the hurdle rate in private equity and proposes an alternative.

Head of global private investment research Andrea Auerbach discusses a market in which fees are becoming harder to track and GPs are on the front foot, in this in-depth 25-minute video interview.

Long-time limited partner turned consultant Ray Maxwell says private equity should benefit from either significant carried interest or high fees – but not both.

If one US state enacts legislation to tax private equity execs more heavily, a host of others could follow.

One investor said the original rate was ‘just not a standard hurdle’.

Plans to simplify the limited partnership agreement are ambitious, lawyers say.

The Alaska Permanent Fund’s approach to private equity provides a glimpse of how the asset class will develop.

In the face of rampant LP demand, should private equity firms worry about the industry’s wider reputation?

The range of carry models being employed make it more complicated for LPs to compare funds, says MJ Hudson managing partner Eamon Devlin.

Junior private fund management staff are increasingly concerned the carried interest boat will pass them by, so may look to advisory positions for greater financial security