Management fees is the fee charging for managing the PEfund. Carried interest will be a Share in the profit, only receives when there is profits ( when profit reaches Hurdlerate). Hence, Both are different.
No.. both are different. Management fee is compulsory exp to investors. Carried interest is paid only if fund made profits.. n carried interest will distribute after payment of principal of investors and preferred return.
Vintage year is the year of when LP make an investments in the particular fund. It is a initial payment year. Let say an investor invested money in 2023 so 2023 is a vintage year for the fund or an investor.
Management fees is the fee charging for managing the PEfund.
Carried interest will be a Share in the profit, only receives when there is profits ( when profit reaches Hurdlerate).
Hence, Both are different.
That's absolutely right 🙂
It means that carried interest and performance fee are same??
No.. both are different. Management fee is compulsory exp to investors.
Carried interest is paid only if fund made profits.. n carried interest will distribute after payment of principal of investors and preferred return.
That's absolutely right 👍
Mam any more videos on private equity regarding vintage year, clawback clause, TVPI etc.
Not yet, but thanks for the great suggestion ☺️
Vintage year is the year of when LP make an investments in the particular fund. It is a initial payment year. Let say an investor invested money in 2023 so 2023 is a vintage year for the fund or an investor.
No it's not the same. It is similar to performance fees paid on hedge funds.
That's correct 💯
carried interest and Management fees both are different
Righto💯
Pls upload some more videos on private equity
Great suggestion. Will do that
Madam explain hudge fund in detail
Hi! I have uploaded a few videos on hedge funds... And will be putting up a few more soon... Thank you for your kind suggestion ☺️
I'm working in a global Investment Bank from 2 years, I want to move to Private Equity firm. Can you please advise if PE is a good career.
@yash. Great question. Are you in operations??
@@sushilahariharan Thanks. Yes I’m in operations.
Nope, Carried Interest is not same as Management fee
Perfect ✅
Performance fees = Carried Interest