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