Bloomberg Businessweek - USA (2020-07-27)

Bloomberg Businessweek July 27, 2020

20

WhenUniversityofOxfxforord professorLuL dovic

Phalippoutoldfinanciersresponsibibleforini veestting

trillions ofdollarsinretirementmoneythaattththee

statedreturnsforprivateequityfundswerenon-

sense,thereweretworeactions,he recalls.Some

worriedtheycouldbelegallyliableformisunder-

standingthedata.Andsomewantedeveryoneto

pretendthe talkneverhappened.

It’sbeenalmostadecade sinceHarvardarranged

thattalkovervideo.Sincethen,the 44-year-old

financial economist has amplified his warnings,

becominga sortofindustryCassandraevenas

innvvestorsplowedmore moneyintofundsrunby

privateequityysspep cialistsincludingBlackstone

GGroupInc.anddKKKRKR&CCo.Lastmonth, Phalippou

firedoffonefinallppapapere blalastingthheeopacityof

privateequityfeesandperformmance.Hedod esn’t

plantowriteonthe subjectagain.

“Myconscienceisatpeace,”he says,standing

undercrabappletreesfor aninterviewasa squall

sweepsacrossa westOxfordpark.“I havewrittenall

my research down, andif someone is responsible,

Editedby

PatRegnier

AnOxfordacademicsaystheindustry’sbig returns

aren’t whatthey seem tobe