Hedge Fund 2-and-20 Fee Structure in SEC Chief’s Crosshairs
- Gensler says fund charges have barely budged in decades
- He says he’s asked SEC staff about ways to boost transparency
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Gary Gensler, whose resume includes a stint at Goldman Sachs Group Inc., says he’s amazed that the hedge fund 2-and-20 fee model has prevailed in the decades since he left Wall Street. In his current gig leading the Securities and Exchange Commission, he’s signaling he wants to change that.
The SEC chief said Wednesday that he’s asked the regulator’s staff to recommend ways to bolster transparency around how much hedge funds and private-equity firms charge their clients. He made clear that lowering fees is a top goal of the agency’s review.