Management fees are fees that are paid by an investor, periodically. The investors will pay the funds into the pooled investment funds for their investment adviser’s fund for portfolio and investment management service.
Also management fees should be applied to all the normal GP operational cost, not excluding the interaction with your LPs. Your LPs should have the access to be able to review annually all partnership expenses. Do not forget that all the placement agent fees will be paid by the GP as well. Therefore, management fee should be considered as a reasonable salary and operation expense, and not exceed.
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