THE high fees that private-equity firms charged in the boom, typically 2% of the assets they oversee (the “management” fee) and 20% of the upside (the “performance” fee), are harder to pocket now.
Such business, barely profitable in the boom years, has become a gold mine as competition has dwindled and bid-ask spreads (the money dealers pocket on trades) have ballooned.
The high fees that private-equity firms charged in the boom, typically 2% of the assets they oversee (the "management" fee) and 20% of the upside (the "performance" fee), are harder to pocket now.