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Management Fee
Antonis Manogiannakis avatar
Written by Antonis Manogiannakis
Updated over a week ago

Typically, the investment manager (or the GP) charges the fund an annual management fee to cover to cover their expenses as well as the cost of sourcing and monitoring investments.

The management fee is typically 2% per year charged on the commitments.

It is common practice that the management fee is reduced after the commitment period to reflect the reduced activity in the fund. The management fee can alternatively be charged on the capital contributions or remaining capital commitments instead.

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