As private equity (PE) firms find it difficult to raise capital in difficult economic times, they are offering limited partners (LPs) more incentives to put in their money. Making the most of the situation, LPs are now demanding a greater say in the use of and returns on the money they commit to PE firms. LPs are entities that include public and corporate pension funds, insurance companies, high net-worth individuals, and university and other endowments that are the source of money for PE firms, which then establish funds to invest. PE fund investors Mint spoke with said LPs have collectively turned cautious, are demanding more rights, and subjecting those raising funds to intense scrutiny. “LPs are now negotiating terms on the fee and share of profits that the fund can take home,” said Sandeep Aneja, chief operating officer and managing director of Milestone Capital Advisors Pvt Ltd, a Mumbai-based real estate fund that is raising a $400 million fund from overseas, and has commitments of $220 million. […]