Skip to main content
All CollectionsSponsors (GPs)FundsFund Administration
Can fund managers charge different performance/management fees to certain investors?
Can fund managers charge different performance/management fees to certain investors?
Ben Morgan avatar
Written by Ben Morgan
Updated over a week ago

As with many other aspects of finance, a general rule for fund managers is to treat their investors fairly.


​

However you may achieve this via two options assuming you take the relevant precautions:


​

  1. Create a new share class that has lower fees but this should be balanced with other terms such as less advantageous liquidity conditions or a higher minimum investment.

  2. Use a side letter - an arrangement between the fund manager and a certain investor that may stipulate a favourable fee structure by virtue of an investor's size or strategic importance to a fund.


​

Did this answer your question?