Upwelling shared insights with PEI’s Buyouts magazine into the alignment concerns faced by GPs and LPs during economic downturns, in particular when facing a reduction in carry and in clawback situations.
“When events lead to unfavorable return outcomes, however, the hurdle rate becomes an impediment, driving misalignment. Unfortunately, such misalignment will be exacerbated today given the combination of major secular changes coupled with industry leverage and record purchase prices paid in the period leading up to the pandemic.”
Read the full article here: Upwelling – How do we get out of this misaligned mess
Click here to access the story and additional content on PEI’s website.