Is Private Equity Ripping Off Retirees?

New York Times reporter Gretchen Morgenson recently wrote a startling piece about how private equity firms allegedly steal from their investors by shifting expenses associated with attorneys and other outside vendors. Essentially, her argument was that private equity firms receive discounts for legal work done on the firms’ behalf, but pay full freight on legal work done for the firm’s investment funds (which are primarily financed by institutional investors like pension systems and university endowments).