PE Glossary
Management Fee
Management Fee · An annual fee charged by the GP to cover fund operations, typically 1.5%–2.0% of committed capital during the investment period and 1.0%–1.5% of invested capital thereafter.
Example
A €1B fund charges 2% annual management fees during its five-year investment period (€20M per year, €100M in total). After year five, the fee typically steps down to 1% to 1.5% on invested capital rather than committed capital.
Related terms
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