Power shifts to private equity LPs

When it comes to alternative investing, we've been talking for a while now about how the power pendulum has swung to limited partners, but the discussion has been heavily focused on hedge funds. However, the same trend holds generally true for private equity funds, according to a report by Preqin, written up by AllAboutAlpha.com.

For one thing, fees seem to be trending lower. Fund management fees have dropped to an average 1.8 percent after several years at 2 percent. Much of this stems from venture capital funds. There's also greater protection should a "key man" leave the private equity firm and more in the way of rebated transaction fees paid by portfolio companies. There are also more clauses that allow the LPs to remove the GP in more circumstances. LPs are certainly hoping this trend holds. 

For more:
- here's the article

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