Do Private Equity Managers Earn Their Fees? Compensation, Ownership, and Cash Flow Performance
---- Acknowledgements ----
We thank Dan Bergstresser, Harry DeAngelo, Steve Kaplan, Anna Kovner, Josh Lerner, Andrew Metrick, Oguzhan Ozbas, Ludovic Phalippou, Antoinette Schoar, Per Strömberg, René Stulz, Mike Weisbach, and seminar and conference participants at Baylor University, UC San Diego, AFA 2012 Annual Meeting, Duke/Kaufmann Entrepreneurial Finance Conference, and Kaufmann/RCFS Entrepreneurial Finance and Innovation Conference for helpful comments and discussions. This paper, along with a companion paper entitled "Cyclicality, Performance Measurement, and Cash Flow Liquidity in Private Equity", supersedes the paper that previously circulated under the title "Private Equity in the 21st Century: Cash Flows, Performance, and Contract Terms from 1984-2010". The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.