Tuesday, July 17, 2007

New Bain fund: "Buy 2 get 1 Free" (well, not free...)

http://online.wsj.com/article/SB118463876366768388.html?mod=rss_Deals_and_Deal_Makers

(subscription required)

Interesting -- price pressure seems to be getting to everyone, including Bain...

As I mentioned once before (and more soon, I hope), I think there are several options the industry and policymakers can use to tax private investment companies fairly, without veering too far to the other side. But one possibly consequence of employing these options is to shift the balance of power towards LPs and away from general partners in private investment companies. LPs will need to approve changes to existing agreements and will have more leverage to negotiate lower fees from general partners unwilling/unable to put their own skin in the game...

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