For years, private equity firms have skimmed money from their portfolio companies, under the guise of "just trying to help." Now there is reason to believe this practice is coming to an end. Not because it's offensive, but because private equity firms are no longer reaping most of the rewards.
The fees I'm talking about here are "monitoring fees," in which an acquired company pays its private equity owners an annual sum for ongoing management and advisory services. You might have heard about these recently in the context of troubled casino company Caesar's Entertainment (CZR), which each year pays nearly $30 million to its private equity owners -- Apollo Global Management (APO) and TPG Capital -- despite annual losses north of $1.4 billion (Caesar's could have killed the arrangement during last year's IPO, but it would have been forced to pay $195 million the privilege).
Read more at Fortune, The death of private equity's fee hogs - The Term Sheet: Fortune's deals blogTerm Sheet
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