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ARTICLE · 11 FEBRUARY 2021

Private Equity Fund Economics – What A Difference (Or Not?) A Year Makes

MJ Hudson
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Every year, MJ Hudson surveys the terms of a large, diverse sample of recently-closed private equity, venture capital and growth capital funds, for which we have advised either the fund manager or a prospective investor.

United KingdomFinance and Banking
Mark Silveira
Mark Silveira
Robert Eke
Robert Eke
Hannah Collins
Hannah Collins
Richard Clay
Richard Clay
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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, for which we have advised either the fund manager or a prospective investor. In this article, we assess the recent trends in core economic terms. For more information, please contact one of the authors of this article or download our full report (https://www.mjhudson.com/download/private-equity-fund-terms-research-2021-part-one/).

A. Management fees

The traditional annual fee of 2% of capital commitments is, for the fourth year running, the most 'popular' fee level: 53% of the funds in our 2020 survey charged 2%. But these funds only accounted for 20% of total capital targeted or raised.

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