Burning the Midnight Oil I came across Professor Victor Fleischer's revised paper on private equity and related vehicles and their compensation structure on The Conglomerate Blog. (I took issue with Fleischer's points in a previous entry) and argued that putting illiquid partnership interests in this sort of tax structure was unwise and probably, given the requirement to divine the intent of partnership carry awards, unenforceable.
At the same time I found an article by Bartlett on the seeming lack of attention of VCs to reputation. While in this instance there might be an issue, other research (312k .pdf) makes it clear that VCs in particular are quite strongly impacted by the signals they give with respect to reputation, at least with respect to other VCs, and, moreover, they seem to be aware of it.
