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Fees

Private equity, as with most actively managed asset classes, involves a fee structure, both to meet the day-to-day operational expenses of a fund manager, and to incentivise the fund manager to achieve the best possible return for an investor. These fees broadly fall under management fees and carried interest and are critically assessed in the papers below.

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Carried Interest Papers

Carried interest is used to describe the fund manager’s performance-related share of realised profits from investments – usually 20% – after the investors have achieved a certain level of returns. As carried interest is only allocated after investments are realised, it incentivises private equity firms to focus on operational improvements and the long term realisation prospects for an investment.


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Report on industry performance


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Further information

FOR FURTHER INFORMATION PLEASE CONTACT THE BVCA

 +44 (0)20 7492 0400

 research@bvca.co.uk