Wednesday, October 20, 2010

PEU Fees to Emerge

WSJ reported on private equity fees, traditionally 2% of assets under management and 20% of profits.  Carlyle Group cofounder David Rubenstein said "a market in fees was likely to emerge as the returns from recent funds become clear:"  Is he hedging on Carlyle's historical 30% annual returns for investors?  He offered that number in April.

Rubenstein recently sold lower fees, but not less than the 20% carry.  Watch what emerges from private equity underwriters (PEU's).