Supporters of the $10trn private equity industry say it fuels economic growth and delivers leaner, better-performing companies.
One leading critic of the sector is Ludovic Phalippou, professor of financial economics at Oxford University.
Phalippou says that private equity firms routinely overstate their past financial performance. And, he says, private equity funds charge a whopping 6-7% a year in fees, wiping out any potential benefits to investors.
Ludovic Phalippou
Phalippou is my guest on the latest New Money Review podcast. In it, we cover:
- What is private equity?
- How big is the private equity market?
- Why have private equity assets grown fivefold in a decade?
- What is the economic footprint of private equity?
- How should we measure private equity funds’ performance?
- How honest are private equity firms in reporting performance?
- Do private equity funds have higher returns than public equity funds?
- What do private equity funds cost?
- Agency conflicts in the private equity industry
- The impact of recent interest rate rises on private equity
- The need for standardised reporting of private equity performance
Listen in for more.
The New Money Review podcast brings you the best minds from the world of money.
From economics to payments, financial markets, technology, law, digital assets, crime and fraud, you’ll find an episode that interests you.
