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 |