There are between 6,000 and 8,000 private equity firms worldwide. A few are very large firms but most are mid cap firms employing 10 to 20 people. Funds are set up as partnerships, with the main governance bodies being the Investment Committee and the Advisory Board. Fund Managers can be independent or have LPs as shareholders. They are rewarded by an annual management fee and a profit share, known as the “carried interest”. Fund Managers have frequently had a previous profession.
Key learning objectives:
Structure and governance of funds
Governance and economics of Fund Managers