Posts tagged private equity
The Perks of Waiving Management Fees in Limited Partnerships: A Win-Win

Since the early days of private equity, funds, mostly organized as Limited Partnerships, have traditionally compensated General Partners, representing investment firms, via a management fee, generally an annual 2% of the total committed capital, and a carried interest, typically 20% of the funds’ future profits. 

But a waiver of these fees can be beneficial for both Limited and General Partners. David Bismuth explains why.

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