3 ms·

I know you're joking, but you're comparing the one-off sale of an entire business to (very possibly repeatable) annual income.

• waterfowl 12y ago
  Oh sure but they GENERALLY do an amazing job of what they sell("give us lots of money and we'll get you more back") in order to pull down that compensation. The people who hire them(i.e. deposit in their fund products) seem to be cool with the fees(meaning it is "worth it" to the high net worth crowd vs. vanguard or w/e...whether that's rational and based on returns or just prestige of "I have my money with Cerberus"). If it weren't "worth it" then either people would use the alternative lower fee investment vehicles or someone would "disrupt" the space with a cheaper hedge fund offering better returns. Of course it can all fall apart(LTCM lol) Plus the huge factor of their personal capital generating a sizeable chunk of this return at the same rate as their fund investor's capital.