Management Fee in Private Funds
Definition
What is Management Fee in Private Funds?
A recurring fee paid to the fund managerThe licensed firm responsible for investment decisions and day-to-day management of a fund., often based on commitments or invested capital.
Example in practice
How This Looks in Practice
The GP charges 2% of committed capitalThe total amount an investor agrees to provide to a private fund when called. during the investment periodThe period during which a private fund may make new investments..
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