Supporters of the $10trn private equity industry say it fuels economic growth and delivers leaner, better-performing companies.One leading critic of the sector is Ludovic Phalippou, who says that the industry routinely overstates its financial performance. And, he says, private equity funds charge a whopping 6-7% a year in fees, wiping out any potential benefits to investors.In the latest New Money Review podcast, I interview Phalippou, who is professor of financial economics at Oxford University. We cover:* What is private equity?* How big is the private equity market?* Why have private equity assets grown fivefold in a decade?* What is the economic footprint of private equity?* How should we measure private equity funds’ performance?* How honest are private equity firms in reporting performance?* Do private equity funds have higher returns than public equity funds?* What do private equity funds cost?* Agency conflicts in the private equity industry* The impact of recent interest rate rises on private equity* The need for standardised reporting of private equity performance.