The Trouble with Venture Partnerships

A piece from today’s FT on how hedge fund partnerships are not good for strategy could very well have been written about large venture partnerships:

The chief executive of Man Group, the world’s largest quoted hedge fund manager, said the partnership structure that most hedge funds adopt can lead to poor strategic decisions.
Stanley Fink told delegates at a hedge fund conference in Lausanne that Man Group made better decisions after it listed in 1994 than when he joined in 1987.
“When I joined there were 30 partners – it was like a mini Goldman Sachs,” Mr Fink said. “That makes it hard to be brutal if one of the partner’s areas is doing badly.”
He said Man’s [public listing] led to more dynamic decisions, such as spinning off the company’s commodity trading business in 1999.

Related posts:

  1. So Many Venture Firms, So Little IRR
  2. Why Are Endowments Better Venture Investors?
  3. Pouring, Drinking, and the Allocation to Venture Capital
  4. The Hedge Fund Bubble
  5. Will the Last Venture Capitalist Please Turn Off the Lights

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