Private equity special report: What about the governance?

The boom in the private equity fund industry has gone into overdrive. New records are being set on almost a weekly basis. This is a golden age for private equity firms: soaring valuations and a frenzy of takeover deals, with the prospect of more to come.

Are there any downsides to this bonanza? There is perhaps one: the governance of at least some private equity funds. At the moment GPs are masters of the universe; they can do no wrong. This has led to grumblings from some smaller LPs. One or two of them have told The NED that when they have raised questions they have been ignored.

To read more on this story see the December issue of The NED.