Have been thinking about this for a while.
E.g., if you raise a $10 bn fund, 2% is $200 mm - is it $200 mm annually, $200 mm the first year, then 2% of $9.8 bn, or 2% of $10 bn the first year, then 2% of whatever the valuation of the assets are the next year (presuming they increased in value)?
| +106 | Is Everyone Too Bearish on PE? | 34 | 14h |
| +48 | Why would anyone do PE in long term in 2026? | 13 | 1d |
| +24 | Q&A: What It’s Actually Like Working at an Independent (Fundless) Sponsor | 4 | 3d |
| +22 | Do you think PE has actually helped you become a better entrepreneur? | 8 | 3h |
| +21 | UMM PE or High Paying Strat Finance? | 13 | 1d |
| +21 | Striking out in last rounds | 2 | 4d |
| +16 | Portfolio Marks | 8 | 4h |
| +15 | DELETE | 1 | 2d |
| +15 | Overwhelmed by amount of data / granularity | 3 | 2d |
| +13 | MF Tech PE 2026 | 2 | 1h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
they'll usually specify in the LPA or PPM exactly. But it'll say something like 2% on committed capital for investment period (usually 5 or 6 years) and then 1.5% of invested capital thereafter. Really depends on the fund, but they'll make it clear. The percent is usually never on the NAV. Always invested or committed capital.
Quo laudantium enim ut quos enim et fugiat. Nesciunt nobis sed sit voluptate. Quo omnis ut aut.
Qui consequuntur ea laudantium ducimus perspiciatis nihil ea. Quae suscipit ullam voluptas voluptatem. Quo iusto eaque harum ex quam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...