Hey everyone,
I would like to know what's the ultimate difference between HFs and AMs. What's the distinction between them? I understand that some AMs that can be considered as HFs. Is there any requirement for an AM be a HF?
Thanks.
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HFs have a certain legal
HFs have a certain legal structure, and generally charge different and higher fees.
Fee structure
I think HF have a 2-20 fee structure while AM (At least CDO AM) have the following
15bps Sr Manager Fee
50bps Sub Manager Fee
20% Incentive fee (target of 12IRR on the Equity piece)