Federal regulators are looking at commissions that buyout firms receive for helping companies they control get goods and services at discount prices, as part of a stepped-up probe of private-equity fees, the Wall Street Journal reported today. At issue are millions of dollars received by private-equity firms in exchange for steering their portfolio companies into so-called group-purchasing programs, which use the portfolio's buying clout to secure cut-rate prices on items as varied as coffee and personal computers. The Securities and Exchange Commission is concerned that fund investors, which give private-equity firms cash for corporate takeovers and other investments, aren't getting enough information about fees earned by buyout firms for these group-purchasing programs, SEC officials said.
