Fund Economics

How exactly is management fee taken from fund?

Asked by:
Community Member
Sep 24, 2023
Let's say we do 4 capital calls over 2 years, and the management fee structure is 3% for first five and then 1% for next five.

SO once an LP has transferred money into the account during the initial two years -- part of that capital is left there to later pay management fee as per schedule?
1 answer
Accepted Answer
Sep 26, 2023
Correct - if you call 100% of their commitment over the 1st two years, then you would have money sitting in the fund's bank account for future management fee payments.

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