Louis Vuitton doesn't slash its prices. But Bain Capital, a Wall Street version of the upscale retailer, has begun to do so. According to the Wall St Journal For more than a decade, Bain charged higher fees than almost all competitors. The Boston-based private-equity firm required investors to pay 30% of gains, above a certain level, from funds managed by Bain, and 2% of all money invested. By comparison, rivals usually take 20% of profits and charge a management fee of about 1.5%.
Bain found eager investors because it scored annual gains averaging about 30% for most of its 27-year history, investors say, with some funds quadrupling their money over the course of their existence. Bain, co-founded by presidential candidate Mitt Romney and currently run by a group including Boston Celtics part-owner Stephen Pagliuca, justified the expenses by noting it had a larger staff and higher costs than most competitors.
Now, as Bain markets a new $2 billion fund focused on investments in Asia, the firm is offering two lower-priced choices….
Read more at http://online.wsj.com/article/SB10001424052702304223804576446320153663948.html?mod=WSJ_hp_LEFTWhatsNewsCollection
No comments:
Post a Comment