Fee-Related Earnings
The profit an alternative-asset manager earns from its steady, recurring management fees, after the costs of running the firm but BEFORE the volatile performance fees (carried interest) that depend on investment outcomes -- abbreviated FRE. Because it excludes the lumpy, unpredictable carry, FRE is the durable, annuity-like earnings stream the market rewards with a higher multiple. It is a firm-defined non-GAAP measure with no single standard, so we show it on a firm's own page but never rank it across firms -- one manager's FRE definition is not another's.
Related terms
Absorption Rate · AFFO per Share · Allowed Return on Equity · Alternative Investments · Anchor Tenant · Assets Under Management
Open this term in the app → — no account needed; browse the full glossary while you research.