Guy Hands’ View

Archive for January, 2016

Alignment between GPs and LPs is at a low ebb

To consider where the global private equity industry is at the end of 2015, we need to consider where it started. The industry began back in the 1970s, when club deals went on to become the first private equity funds of the 1980s. In those days, deals were backed by a small number of investors, and the GPs typically invested a substantial amount of their own money in the funds. There was an almost perfect alignment of interest between GPs and LPs. Read more.