David T. Robinson is Professor of Finance at the Fuqua School of Business. His research findings have appeared on Bloomberg and Marketplace.org, as well as in the Financial Times, Forbes, the New York Times, The Atlantic, and the Wall Street Journal.
By: Blakely Blackford. Historically, many limited partners in private equity have voiced concerns that the limited partner agreements they sign with general partners are bad deals. Among the litany of concerns, two that come up most often are that general partners earn excessive fees, and that they earn carried interest on strong exits even if this exit follows a string of poor past returns. As the sector has cooled, the contracting pendulum has swung in favor