主人公是GP还是LP？

问题如下：

Wenda Lee, CFA, is a portfolio manager at a UK-based private equity institutional investor. She is considering an investment in a mid-market European buyout fund to achieve a better diversification of her firm’s existing private equity portfolio. She short listed two funds that she deemed to have a similar risk return profile. Before deciding which one to invest in, she is carefully reviewing and comparing the terms of each fund.

Based on the analysis of terms, which fund would you recommend to Lee?

选项：

解释：

Assuming that both funds have similar risk return characteristics, a closer analysis of economic and corporate governance terms should be instrumental in determining which fund to select.

In economic terms, Mid-Market Fund B has a higher carried interest relative to Mid-Market Fund A, but Mid-Market Fund B has a fee structure that is better aligned with the interests of LPs. A larger proportion of Mid-Market Fund B’s fees will be on achieving successful exits (through the carried interest), whereas Mid-Market Fund A will earn relatively larger fees on running the fund (management fees and transaction fees) without necessarily achieving high performance. In addition, the 9 percent hurdle rate of Mid-Market Fund B is indicative of a stronger confidence of the fund manager to achieve a minimum compounded 9 percent return to LPs under which no carried interest will be paid.

In corporate governance terms, Mid-Market Fund B is far better aligned with the interests of LPs as a result of a clawback provision and a morefavorable distribution waterfall to LPs that will allow payment of carried interest on a total return basis instead of deal-by-deal.

The conclusion is that Mid-Market Fund B appears better aligned with the interests of LPs.