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)?
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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.
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