Where do PE funds get the liquidity for management fees/fixed expenses?
How do PE funds cover their operating costs given investments are illiquid? I assume HF's and LO's just draw 1-2% management fees directly, but don't see how PE/PC funds do the same?
Do they get dividends from PortCos directly? Or do they invest, say, 95% of AUM and keep 5% in cash to pay for salaries, rent, etc?
Thanks
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