How Big Promises And Fat Fees Turned Private Equity Into A Lousy Investment

<p>Ten years after former Merrill Lynch broker Kurt Stein and his other Merrill colleagues were wooed by Blackstone into the allure of returns north of 15% per year with private equity funds, many of their clients are now sitting with annual returns, after all fees, of 10% or less, well below the 15% annually the S&amp;P 500 has returned. Stein now believes these funds were misrepresented by wealth management firms and their private equity partners.</p>