London Business School Coller Institute of Private Equity

By Morris P, Phalippou L
Articles and Presentations

Date Released: 21/02/2011
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This paper does not advocate more regulation but better regulation; where prevention of systemmic risk and the promotion of market efficiency have equal focus. The authors suggest regulations proposed by AIFM will bring costs without benefits. Morris and Phalippou say that regulation should not be focused on the relationship with portfolio companies as the PE governance model seems to bring positive returns. Instead regulatory focus should fall on the realtionship between Private Equity and its investors.