Management fees are a key component of fund operations. Fees are typically paid to the General Partners (GPs) in exchange for managing the fund.
Agreement and calculation
Management fees are typically set as a percentage of the fund's committed capital, as agreed between the General Partner (GP) and the Limited Partners (LPs). These fees are meant to cover the operational expenses of managing the fund. The fee percentage generally ranges from 1% to 3% annually, depending on the fund's structure.
Payment process
Management fees are charged quarterly based on an agreed-upon percentage of total committed capital, which is outlined in the Limited Partnership Agreement (LPA.)
Distribution process
Management fees are paid out quarterly directly to the associated fee recipient page on the Dashboard. Depending on the fund's structure, the fees may be distributed to different entities tied to the GP, such as a management company or general partner entity.
For financial and tax purposes, all management fees are paid directly to the fee recipient page on the Dashboard. From this page, GPs may transfer the funds via ACH or wire to an off-platform account of their choosing.
Viewing estimated management fees
For GPs who wish to see an estimate of their management fee schedule, the Dashboard allows you to download a CSV file via the “Capital Breakdown” button on the “Investing” tab.