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Private equity firms and investors beg to differ

A survey reveals a gulf in expectations between private equity firms and their investors in the key areas of fees and communication

The vast majority of private equity investors believe fee structures cause a divergence of interests between private equity firms and their investors, according to a survey by placement agent Acanthus Advisers.

The survey of 60 executives at private equity firms and their investors found that 97% of investors agreed or tended to agree that current fee structures caused a divergence of interests between the parties, while just 22% of private equity fund managers concurred.

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