There is an irony in the brewing tension between investors and private equity firms, says Leon Shahinian, manager of private equity investments at the California Public Employees Retirement Scheme (Calpers).

The private equity model is based on “great transparency and governance and a strong alignment of interests between company executives and their private equity investors”, he says. Managers invest heavily in their own funds, take board seats in companies they back and keep a close eye on the performance of their investments.