Why is alignment so important in investing?
Replied byLuke Sarsfield
Chairman & CEO at Ridgewood Capital
Niche: Technology
Revenue: /month
Location: New York, USA
Started: 2002
Alignment creates trust. When investment managers only succeed if their clients succeed, everyone is working toward the same outcome. Limited partners want managers who are focused on generating strong returns, and carried interest helps create that direct connection between performance and compensation.
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