So here's what I don't get: If people give them money to invest, and they generat returns for the investors in a way that the investors are happy with, what does it matter what fees they charge? It is a mutually beneficial transaction. The investors make money, the fees make the company money. Now the company money that goes directly to the owners, rather than say direct expenses, is the owner's personal money. It is their profit from the transaction. This is what they are giving 50% of away.

The only way I can read your argument, is that the investment company should stop being generally profitable for the owners, and return more money to the investors. How does this make business sense? It would be like saying "Apple makes profit from selling iPhones, and just gives it away to shareholders. They should really bow to the customers and lower the costs and socialist bullshit to the shareholders". Unless of course Apple share holders are magical unicorns who deserve it, and the partners in a VC firm don't.