I recently looked at a few of the largest US banks’ private equity solutions for HNW. Even with the perspective of having worked with alternative investments for some time, I was surprised by the extra level of fees charged HNW clients.
Start with the alternative investment itself. Certainly the private equity firms have pricing power in this current seller’s market—in my recent Forbes column “Not Enough Private Equity To Go Around”, I shared that Preqin estimated that there was a record $2 trillion in “dry powder”, or unspent money, in private funds globally, with over $1.2 trillion of that total $2 trillion being earmarked for private equity.
