Every year, MJ Hudson surveys the terms of a large, diverse
sample of recently-closed private equity (PE), venture capital (VC)
and growth capital funds, where we have advised either the fund
manager or a prospective investor. In this article, we examine
developments in funds' core economic terms over the last year.
For more information, please download the full report (
https://www.mjhudson.com/download/fund-terms-5th-edition-part-1/).
Management fees
In the past year we have seen fee levels holding up, with
investor demand for good quality 'alt asset' managers
continuing to outstrip supply.
The traditional annual fee of 2% of capital commitments is, once
again, the most 'popular' fee level: nearly half of the
funds in our 2019 survey charged 2%. Together, they represent 24%
of total capital raised by the full cohort, three times the
corresponding proportion in our 2018 survey.
