Date Added: Jul 2010
The analysis in this paper is qualitative in nature. The authors are developing models that can more precisely measure the magnitude of misalignment and quantitatively identify observable measures of scenarios when misalignment is at its worst. They expect that such analysis will draw more nuanced and precise conclusions and aid in developing improved contracting mechanisms. They look forward to working with the PE community to further enhance this analysis. Many of the challenges currently facing the PE industry and underlying the concerns of LPs had been building prior to the recent market turbulence.