Look Who’s Coming to Private Equity’s Defense on Fee Secrecy

August 26, 2016

August 26, 2016

Public pensions resist state bills seeking more disclosure.

Private equity managers can’t be trusted, and state and city pension officials, with $420 billion invested in the asset class, know it. The U.S. Securities and Exchange Commission told them so two years ago, when it reported that the majority of buyout fund managers were cheating investors with excessive and undisclosed fees. Since then the agency has repeatedly settled with funds it has accused of defrauding investors, including a $30 million settlement with KKR in June 2015; another for $39 million with Blackstone in October; and one for $52.7 million with Apollo Global Management on Aug. 23. (The firms didn’t admit wrongdoing.)  Read more

Source: Bloomberg