Summary:
The book provides an insider's perspective on the private equity industry, revealing the strategies, tactics, and mindset of successful investors who consistently generate high returns. It delves into the mechanics of how these investors operate, manage risks, and navigate the complex world of finance to maintain their edge and achieve success.
Key points:
1. Fee Structure: The "Two and Twenty" refers to private equity fees: 2% for management and 20% of profits as a performance fee. This setup motivates managers to aim for high returns but is sometimes seen as controversial.
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