PE Management Fee Question
Ok, so I have been looking through a lot of sponsor-backed companies that they all have management fees they pay to their sponsor.
So my question is, are these management fees on top of the 20/2 management fees that are paid by the LPs?
Also, if a sponsor owns something like 85% of the equity and management owns 15%, do the sponsor only recieve 85% of management fees or do they still recieve all of it?
thanks
yes it is on top of the 2/20, that is for managing the fund... the sponsor fee is a fee paid for their "advisory" type role...
it all goes to the sponsor, management is not incentivized with that fee, only with time / performace options...
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