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I think you were diplomatic in talking about the local LPs. We all know that the key advisors in Australia collude like crazy on which funds to back and which fees or terms to accept.

ASIC where are you?! LOL.


Super fund trustees are a factor. Often they have very little understanding of private equity and just react to the fee.

I have witnessed situations where the alt assets investment team wanted to commit to a PE manager but the trustees blocked it because preferential fees couldn't be negotiated.



In London the 2/20 model isn't up for serious discussion in the mid market.

However, so called "work fees" such as director fees and transaction fees certainly are on the agenda.


We're raising capital for a new PE and smaller VC fund and the focus is definitely on fees. We've had protracted negotiations on the preferred return rate and carry - we went in with a sensible management fee so this was not really an issue.

Outside Fees, or what George calls 'work fees' have also been subject to negotiations. They are not averse to it but rather want full transparency. Cannot help but read between the lines that other players have used this in the past to get unfair and undisclosed benefit.

I pity a new PE or VC firm who wants to attract commitments from local LPs - very tough road even for the established players. And all these negotiations are driving the (legal) costs of delivering a new fund significantly higher than what it was a number of years ago.

Jorge J Tucker

It’s a book that makes fun of every societal institution. It’s incredibly funny and terribly sad at the same time. The author, Joseph Heller, is simply brilliant with every single sentence.


I agree - the best performing managers will raise their money offshore.

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