At the HKMA private equity summit, industry leaders clashed over carried interest (CV) structures. One panelist described current models as 'most aligned' with LP interests, while another called them 'flawed and controversial.' The debate centered on whether recent reforms adequately address alignment of interests between GPs and limited partners. Attendees agreed the industry faces scrutiny over fee transparency and performance incentives.
The HKMA event highlighted ongoing tensions in secondaries markets regarding valuation practices and carried interest distribution. No consensus emerged on optimal CV frameworks, with advocates pushing for greater LP co-investment opportunities and critics warning against excessive GP compensation. The discussion underscored persistent divides in private equity governance as the asset class matures.
Source: Secondaries Investor · Summarized by HeadlinesBriefing