Axelson, Ulf; Stromberg, Per; Weisbach, Michael S. - Charles A. Dice Center for Research in Financial … - 2008
financing each deal separately, raising a fund where the manager receives a fraction of aggregate excess returns reduces … was made in period
1. The fly-by-night condition stays unchanged, but the break-even condition becomes:
w
P,2
(Z) ≥
I −K
α … the manager receives a fraction of aggregate excess returns reduces incentives to make
bad investments. Efficiency is …