Back to School: GPs must close riskier deals to justify high fees

As the private equity industry's stockpile of committed capital continues to rise and limited partners chip in larger amounts to new deals as co-investments, Bain & Comapny sees no relief for the high prices general partners are paying for assets. For the “foreseeable future, that's going to be the future of the industry,” said Hugh MacArthur, a partner with Bain who leads the firm's global private equity practice. “The world is just awash in financial capital, and financial capital has been growing at a very rapid rate the last couple decades.”