Private equity portfolio company fees

• 成果类型: Article
• 署名作者: Phalippou, Ludovic; Rauch, Christian; Umber, Marc
• 署名单位: University of Oxford; American University of Sharjah
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2018.05.010
• 发表日期: 2018
• 页码: 559-585
• 关键词: private equity; Monitoring fees; Transaction fees; COMPENSATION; corporate governance

摘要

In private equity, general partners (GPs) receive fee payments from companies whose boards they control. Fees amount to $20 billion evenly distributed over time, representing over 6% of equity invested by GPs. They do not vary with business cycles, company characteristics, or GP performance. Fees vary significantly across GPs and are persistent within GPs, even after accounting for fee rebates to limited partners (LPs). GPs charging the least raise more capital postfinancial crisis and are backed by more skilled LPs. GPs increase fees prior to going public. We discuss how these results could be explained by optimal contracting and tax arbitrage. (C) 2018 Elsevier B.V. All rights reserved.