Ellis: Alternatives cannot achieve perfect alignment because investors pay and managers receive fees
Luke Ellis · Luke Ellis and Mario Therrien – Best Practices in Alternatives (Capital Allocators, EP.158) · Sep 28, 2020 · at 12:10
Luke Ellis, CEO of Man Group, explains why standard-setting between managers and LPs is necessary given the structural tension in fund fee dynamics.
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“Everybody talks about alignment of interest in the alternatives industry, but the reality is, unless you sit around and discuss it, you have a situation where The investors pay the fees and the managers receive the fees, and you can't be perfectly aligned in that world because you've got very different incentives.”
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