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Private equity has a whistleblower problem

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A whistleblower has accused private equity firms of violating securities laws. What does it mean?

FORTUNE -- For decades, private equity funds have collected "transaction fees" from their portfolio companies, often related to mergers or initial public offerings. Sometimes they share with their investors, sometimes they don't. Sometimes the fees are for tens of thousands of dollars, sometimes for tens of millions. Either way, the practice gooses positive returns and lowers the MORE


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