News for hackers. Stuff that matters.

A comment on Why Does Private Equity Get to Play Make-Believe with Prices?.

Re:Why Does Private Equity Get to Play Make-Believe with Pri... by nimzoLarsen on Saturday January 07, 2023 @05:00PM (#34293364)
PE shops get paid based on their assets under management (AUM).

If they write down their investments, their AUM drops, and with that the fees they charge.

[ Parent | on HN ]
Re:Why Does Private Equity Get to Play Make-Believe with Pri... by 1jbdg on Saturday January 07, 2023 @05:56PM (#34293900)
Their fee is based on committed capital not marked up AUM
[ Parent | on HN ]