Private Equity Current Conditions - The Economist

The Economist suggests that investors in private equity are beginning to focus on costs, primarily PE firms' fees. Until recently, cost considerations have been assigned the last row of the investment bus:

"[T]he [private equity] industry may be due a period of contraction ... . Investors will demand lower fees from those that remain." [Emphasis added.]

That row assignment has significantly affected long-term, true returns. Here's a link to the article:

http://www.theelectroniceconomist.com/businessfinance/displayStory.cfm?story_id=13988522