Private equity’s pay machine becomes a governance test

Allvue Systems’ Richard Change and ILPA’s Emily Kisak.
Allvue Systems’ Richard Change and ILPA’s Emily Kisak.
The fees private equity managers earn on successful deals are no longer just a matter of compensation. For the pension funds and insurers that bankroll the industry, the way those payouts are calculated has become a test of governance, and an increasingly important influence on where capital flows next.

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