{"id":7523,"date":"2024-07-16T05:15:12","date_gmt":"2024-07-16T05:15:12","guid":{"rendered":"https:\/\/newmoneyreview.com\/?p=7523"},"modified":"2024-12-16T20:25:23","modified_gmt":"2024-12-16T20:25:23","slug":"capitalism-on-steroids","status":"publish","type":"post","link":"https:\/\/newmoneyreview.com\/index.php\/2024\/07\/16\/capitalism-on-steroids\/","title":{"rendered":"Capitalism on steroids"},"content":{"rendered":"<p>Supporters of the $10trn private equity industry say it fuels economic growth and delivers leaner, better-performing companies.<\/p>\n<p>One leading critic of the sector is Ludovic Phalippou, professor of financial economics at Oxford University.<\/p>\n<p>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.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-7525\" src=\"https:\/\/newmoneyreview.com\/wp-content\/uploads\/2024\/07\/lp.jpg\" alt=\"\" width=\"473\" height=\"312\" srcset=\"https:\/\/newmoneyreview.com\/wp-content\/uploads\/2024\/07\/lp.jpg 473w, https:\/\/newmoneyreview.com\/wp-content\/uploads\/2024\/07\/lp-300x198.jpg 300w, https:\/\/newmoneyreview.com\/wp-content\/uploads\/2024\/07\/lp-200x131.jpg 200w, https:\/\/newmoneyreview.com\/wp-content\/uploads\/2024\/07\/lp-350x230.jpg 350w, https:\/\/newmoneyreview.com\/wp-content\/uploads\/2024\/07\/lp-334x219.jpg 334w, https:\/\/newmoneyreview.com\/wp-content\/uploads\/2024\/07\/lp-165x109.jpg 165w\" sizes=\"auto, (max-width: 473px) 100vw, 473px\" \/><\/p>\n<p><em>Ludovic Phalippou<\/em><\/p>\n<p>Phalippou is my guest on <em><a href=\"https:\/\/blubrry.com\/newmoneyreview\/133010448\/capitalism-on-steroids\/\">the latest New Money Review podcast<\/a>.<\/em> In it, we cover:<\/p>\n<ul>\n<li>What is private equity?<\/li>\n<li>How big is the private equity market?<\/li>\n<li>Why have private equity assets grown fivefold in a decade?<\/li>\n<li>What is the economic footprint of private equity?<\/li>\n<li>How should we measure private equity funds\u2019 performance?<\/li>\n<li>How honest are private equity firms in reporting performance?<\/li>\n<li>Do private equity funds have higher returns than public equity funds?<\/li>\n<li>What do private equity funds cost?<\/li>\n<li>Agency conflicts in the private equity industry<\/li>\n<li>The impact of recent interest rate rises on private equity<\/li>\n<li>The need for standardised reporting of private equity performance<\/li>\n<\/ul>\n<p><a href=\"https:\/\/blubrry.com\/newmoneyreview\/133010448\/capitalism-on-steroids\/\">Listen in<\/a> for more.<\/p>\n<p><em>The New Money Review podcast brings you the best minds from the world of money. <\/em><\/p>\n<p><em>From economics to payments, financial markets, technology, law, digital assets, crime and fraud, you&#8217;ll find an episode that interests you.\u00a0<\/em><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>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 [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":7524,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1013,1012,1053,1011],"tags":[2271,2272],"class_list":{"0":"post-7523","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-account","8":"category-exchange","9":"category-featured-1","10":"category-value","11":"tag-ludovic-phalippou","12":"tag-private-equity"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Capitalism on steroids - New Money Review<\/title>\n<meta name=\"description\" content=\"Does private equity improve companies&#039; financial performance and deliver higher returns to investors? 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