Is the PE industry any more ethical than the universal banks?
Ever since Mitt Romney failed to make the economic case for private equity during the last presidential campaign, PE’s public image has been battered even further.
The deflating effects of underperformance and overregulation
Warren Buffet’s wager with Protégé Partners epitomizes the gloom hovering over the hedge fund industry. In 2008, the Oracle of Omaha bet the New York-based fund-of-funds $1 million that index funds would outperform hedge funds over the next 10 years.
Now where are the ‘animal spirits’ going to go?
Deutsche Bank just took its most daring step yet to reprogram its workforce. It adopted a policy denying the bank’s top-performing traders plum promotions and fat bonuses if they’re deemed to be “disruptive” or non-team players.
Who knew what PE managers were hiding from their investors?
Are private equity documents so opaque that even sophisticated investors couldn’t possibly figure out how much PE firms actually earn (or save) from their portfolio companies?
Are 2 & 20 just not enough?
Are private equity types any different from hedge funders?
The SEC apparently doesn’t think so and, after excoriating the latter for flagrant securities law violations, the regulators are now training their sights on the former.
SEC sues an investment banker who just put 2&2 together
In 2010, Richard Bruce Moore, an investment banker at Canadian Imperial Bank of Commerce (“CIBC”), counted the Canadian Pension Plan Investment Board (the “Pension Board”) among his best clients.