PE HUB Wire Highlights, 8.26.19

Seven problems with carried interest allocation; Coller, HarbourVest lead $1 bln-plus Insight Venture revamp; CalPERS board sends draft code of conduct back for overhaul

I’m back. How is everyone doing? What did I miss?

I spent part of last week at the U.S. Open 2019 qualifying rounds. Admission is free. Now many of you are familiar with my coverage of Rafael Nadal. (Yes, I’m a fangirl but he really works at his game.) I arrived Tuesday, Aug. 20 at around noon to find a crowd at the practice courts. Rafa, wearing grey shorts and a matching muscle shirt, was already there. It was around 95 degrees, with nearly 80 percent humidity, and the heat was hard to endure as I stood in the sun. The players, including Rafa, were drenched.

I walked over to Arthur Ashe stadium where I discovered Novak Djokovic hitting with someone. The session ended at around 1 pm when a player, carrying his gear, walked onto the court. “Vamos Rafa!” people shouted. The changeover was very casual. For the next hour, Rafa practiced shots with someone named Carlos. He exited at around 2 pm but that wasn’t the end. At 4 p.m., Rafa was back on the outside practice courts. (Yes, he was wearing the same outfit.)

What are you doing on your summer vacation, hubsters? Is your PE game as strong as Rafa’s court coverage?

Everyone wants carried interest but not everyone should get it. Simon Havers, of executive search firm Odgers Berndtson, has written a column for PEI on the problems with allocating carry. Carried interest can become less of an exercise in rationality and more a social process or even a “bun fight,” Havers said. I’ve never heard of this term, but it sounds interesting.

Analysts and associates shouldn’t get carry, Havers said, while operating partners in many firms “are treated as second-class citizens.” See his column here.

David Koch, the billionaire industrialist who was part of Koch Industries, has passed away at the age of 79. Read our brief here.

Dean Takahashi, second in command at Yale’s $29.4 billion endowment, is stepping down, Bloomberg reported.