Investment Funds Observations 2017 - Part Seven

From our vantage point as advisers to many of the world's top private equity houses, broad market forces flow through to our instructions, and ultimately drive many of the terms of the funds we advise.

In this series we take a look at what we have been seeing in the investment funds world. Part seven will focus on private equity funds.

Fees

20% remains by far the most common carried interest percentage, typically arising after a preferred return hurdle of 8% has been passed.

Fund-as-a-whole waterfalls continue to outnumber their deal-by-deal counterparts, with investors insisting on whole fund performance before allowing for payment of performance allocations.

The stated range of management fees continues to be a little broader, with some deviation from the historical 2% standard.