Matt Levine’s Money Stuff: Private Markets Charge More

Fees

At a very high level, the job of the financial industry is to take customers’ money and invest it in economic growth. When the economy grows, the investors get a share of that growth as a return on their investment.

How much should the financial industry charge for doing that job? It’s not an easy job. The financial industry has to figure out what companies will generate economic growth, and allocate capital to them, and monitor them, and do all the administrative and sales work of moving money from people who have it to companies that need it. A ...