Private equity firms offer investors an investment opportunity that can result in fruitful returns. However, one of the greatest disadvantages associated with such investments is the high management fees investors must pay to the firms. In the past few years, direct private equity has grown in popularity among both institutional and individual investors.1 By putting…
Author: Jessie Chen
The Rise of Third-Party Litigation Financing in the United States
Litigation financing is a central concern for parties before any serious litigation is undertaken. Given the high costs associated with high stakes litigation, many law firms are willing to create financing plans with clients that will enable the parties to move forward with their cases. Arrangements where law firms work on a contingency basis have…
Zombies of the Private Equity Industry Pt. II
A previous blog post discussed the existence of zombie funds in the private equity industry as well as their effect on the investor market. Approximately $116 billion is sitting in almost 1,200 zombie funds and their presence is an impediment to the growth of investor wealth while continuing to accrue management fees for ineffective managers.1…
Zombies of the Private Equity Industry Pt. I
Private equity funds have begun to slowly show the positive results of fundraising efforts – the capital raised in 2013 is up 20% compared to what was raised in the same period in 2012.1 Although the results of industry fundraising are improving, the amount of time needed to raise those funds is continuing to grow….