Thursday, September 28, 2006

Private Equity’s Fees Are Too High, Pension Fund Says

Fees earned by buyout firms such as Blackstone Group and Texas Pacific Group are too high and could dampen their enthusiasm to make money for clients, according to the manager overseeing Britain’s largest corporate pension fund.

The 2 percent management fee typically charged by private equity companies is too much guaranteed income when a fund can be as large as $15 billion of assets, said Mark Anson, Chief Executive Officer of Hermes Pensions Management.

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