I'm looking to move into a primary fund investing role where a lot of deal flow is driven by separately managed accounts and specific client mandates. Obviously fees are charged on this but how does this compare to a FoF in terms of carry or incentive fees? Are there any beyond just earning an advisory fee?
Trending Content - Private Equity Forum
| +45 | Future of PE | 8 | 4h |
| +25 | Hardest time I have ever seen to be a GP | 3 | 3d |
| +20 | How to Get on Career Track / Stay Post ASO years | 6 | 1d |
| +19 | Weighing exit from LMM PC/PE | 4 | 1d |
| +18 | Healthcare PE | 7 | 11h |
| +15 | KKR comp for Principal | 20 | 10h |
| +11 | Reality of the move from LMM to MM | 2 | 6d |
| +9 | LMM/MM PE London | 5 | 2d |
| +9 | PE Behaviorals Feedback | 1 | 6d |
| +9 | MBA and Private Equity | 3 | 2d |
Career Resources
My understanding is that SMAs usually have some type of management fee (whether it is more advisory / fixed or % of invested I am not sure) but also have performance incentive. Though the hurdles can be higher or "hard hurdles" so not as lucrative as a traditional PE fund.
For HFs, SMAs generally have the exact same fees as the master fund, the only difference is the fund that set up the SMA has no lock up and can pull their capital at any time so can be risky joining a fund with a large % of AUM being in SMAs.
Im sure PE is different tho and not sure how helpful this answer is.
Ad quibusdam vel libero. Vel tenetur ut consequuntur ut consectetur cumque. Quisquam quam ipsam sunt ipsa.
Et ut voluptas sed incidunt. Dignissimos nulla et nam similique id ab repellendus.
Odit distinctio nesciunt nulla rerum consequatur ipsa sunt est. Sequi maiores aut ut sed quasi at accusantium aut. Temporibus nobis harum et enim voluptatem.
Aut molestiae illum eum omnis possimus dignissimos. Aut explicabo eaque quia incidunt sit quasi. Et eaque accusamus rerum aliquid pariatur neque.
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...