Private equity: A fee too far [pdf]
I&#x27;m not sure I understand the concern:<p>- company is bought in a LBO by a PE company<p>- PE company has onerous fees as a part of the buyout agree (which the target company agrees to)<p>- the victim are institutional investors who pay these high fees, but were willing partners to the LBO<p>I mean it sounds like one group of people from Wall Street trying to rip off another group from Wall Street.<p>Can&#x27;t the institutional investors just pull their investment if they think it&#x27;s a bad deal?  Can&#x27;t they read the fine print on the LBO deal?<p>Do we need to somehow protect institutional investors who manage tens of billions of dollars?  Are they a victim that needs protection?<p>How is it all that different from a company owned by a majority shareholder who makes bad business deals?  What do institutional investors do then?  Presumably they use their voting power to stop it, or else just exit their position?