Private Equity (PE) is transitioning from an asset class that was traditionally available to large endowments and institutions to a more widely available asset class. A number of private equity funds have recently come to market. If you are considering incorporating private equity into portfolios, it is important to understand the fees that accompany this asset class. Each fund’s fee structure will vary, but there are some elements of a private equity fee structure that may be quite different to a traditional listed equity fund.

1. Management fees - charged on committed or invested?

In a ...