Management Fee
The annual fee paid by limited partners to the general partner for ongoing fund management, typically 1.5-2.0% of committed capital during the investment period (years 1-5), often stepping down to 1.0-1.5% on invested capital during the harvesting period (years 6-10). Total fund-level economic burden over a typical 10-year fund: 12-15% of committed capital. The management fee comes directly out of LP capital and is the largest single ongoing fee burden in a PE fund. LP scrutiny in 2024-2025 institutional terms focuses heavily on step-down provisions and committed-vs-invested-capital base.
Lessons that use this term
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.