3 ms·
And the solution is simple, remove the annual fees, and/or require that the GP invest their own money into the fund.
by marcus 18y ago
And the solution is simple, remove the annual fees, and/or require that the GP invest their own money into the fund.
- deleted 18y ago[deleted]
- pchristensen 18y agoFat chance of that! Not until those funds are driven to death by successful, innovative funds that provide better returns because of better incentives. Even then, there's so much capital out there that the old style funds would still exist.
- marcus 18y agoIf there's one thing I learned it's that to drive people to better results you need to align their interests with yours as perfectly as possible. And I find it astonishing that there is an entire industry whose interests are so far removed from that of their clients. This kind of inefficiency just screams for a disruptive player.