CFA Practice Question

There are 139 practice questions for this study session.

CFA Practice Question

The management fee charged by private equity funds generally range from 1 to 3% of:
A. invested capital.
B. committed capital.
C. net assets.
Explanation: A private equity fund only draws the money from its investors each time it acquires a company, but the management fee is based on committed capital, not invested capital.

User Contributed Comments 2

User Comment
jocelynivy Collect Management fee on committed capital only
sumeetb For hedge funds AUM, and for PE Funds Commited capital as per CFA Curriculum
You need to log in first to add your comment.