Core Viewpoint - The article discusses a significant power struggle within a private equity firm, Jingqi Investment, highlighting the breakdown of trust and collaboration between its founders, Fan Siqi and Tang Jingren, which has escalated into public accusations and disputes [3][4][5]. Group 1: Background of the Conflict - The conflict began with a public accusation from Jingqi Investment, where Fan Siqi accused Tang Jingren of misappropriating funds and acting without shareholder consent [3]. - Tang Jingren countered by questioning Fan Siqi's financial decisions and claimed that the firm had become a "criminal den" under Fan's leadership [4]. - The personal relationship between the founders, once characterized by mutual support, deteriorated significantly, leading to public disputes and accusations [5]. Group 2: Operational Vulnerabilities - The article emphasizes the fragility of private equity firms, particularly those relying on trust and personal relationships, as opposed to just quantitative models [5][11]. - The control of critical assets such as company seals and digital access is highlighted as a significant point of contention, with the potential for one partner to disrupt operations entirely [7][9]. - The article notes that the lack of oversight and the concentration of power in a few individuals can lead to catastrophic failures in trust and operational integrity [11][12]. Group 3: Governance and Structural Issues - The governance structure of Jingqi Investment is critiqued, particularly the decision to allow one partner to hold significant control over operational assets while the other was distanced from daily management [8][9]. - The article suggests that the ownership and control dynamics within private equity firms need to be carefully structured to prevent conflicts and ensure accountability [20]. - It also points out that the balance of power between market-facing and research-focused roles is crucial for maintaining stability and trust within the firm [14][20]. Group 4: Lessons for the Industry - The events at Jingqi Investment serve as a cautionary tale for the private equity industry, emphasizing the need for robust governance structures and clear delineation of roles and responsibilities [20]. - The article advocates for a reevaluation of equity structures to mitigate risks associated with power imbalances and to enhance operational resilience [20]. - It concludes that fostering a culture of transparency and shared ownership can help prevent similar conflicts in the future [20].