Why is alignment so important in investing?

Luke Sarsfield
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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