Private Equity Wire

FEBRUARY 14, 2024

PARTNER CONTENT By Muhammad Akram, CPA Founder, Akram | Assurance, Advisory & Tax Firm Why fair value is so important Fair value impacts net assets/partners’ capital, potentially overstating performance and overcharging management and performance fees.

Venture Capital 98

Venture Capital Investing Best Practices Mutual Funds 98

Pension Pulse

MARCH 19, 2024

Redwood stands to earn administrative and potential performance fees. Redwood will earn ongoing fees to oversee the administration of the Joint Venture and is entitled to earn additional performance fees upon realization of specified return hurdles.

Investing 59

Investing Performance Fees Assets Financing 59

Fortune Financial

MARCH 5, 2024

This means staying informed about plan performance, fees and compliance requirements. Active Management and Engagement: Once your 401k is operational, the focus shifts to active management and engagement. Regular contributions are vital, but so is ensuring the plan remains a good fit for your evolving business and workforce.

Taxes 52

Taxes Leveraging Financial Institutions Performance Fees 52

The Big Picture

OCTOBER 14, 2023

We discuss the firm’s unique fee arrangement: For institutional accounts of $100 million and up, they pay a base fee 33% of outperformance versus the benchmark (and no management fee). When they underperform, they refund as much as 25% of their performance fees.

Investing 72

Investing Performance Fees Startups Management Fees 72

The Motley Fool

JULY 14, 2023

On an equivalent day count basis, our annualized effective fee rate was 0.2 Performance fees of 118 million increased from a year ago, primarily reflecting higher revenue from illiquid alternatives. We talked to you about adding nearly $2 billion of base and performance fees in 2022. government money market funds.

Asset Management 130

Asset Management Assets Banks Debt 130

The Motley Fool

AUGUST 2, 2023

While acquisitions contributed a portion of the year-over-year growth in adjusted EBITDA, we're also benefiting from a healthy mix of higher pull-through of specialty technology and services, as well as maturation of the performance we book.

Securities and Exchange Commission (SEC) 100

Securities and Exchange Commission (SEC) Leveraging Capital Prospects 100

Pension Pulse

MAY 2, 2024

Don't bother paying big fees for beta chasers here, it's a recipe for disaster and keep in mind, as rates more up, so does their bogey to charge performance fees (T-bills + 500 bps ain't what it was back in 2020, duh!). Lastly, a quick note on hedge funds since I am an expert in the field.

Pension Funds 59

Pension Funds Hedge Funds Buyout Due Diligence 59

The Motley Fool

APRIL 18, 2024

What needs to happen here for returns to recover and accrued performance fees to build into what I think are big crystallizations anticipated for next year? And when that happens, we'll get these unrealized performance fees that happen on a regular basis. So to me, it's a matter of time.

Assets 130

Assets Debt Banks Capital 130

Pension Pulse

MAY 22, 2024

billion of net income, CPP Investments directly and indirectly incurred $1,617 million of operating expenses, $1,449 million in investment management fees and $2,067 million in performance fees paid to external managers, as well as $427 million of transaction-related expenses. To generate $46.4 bps and below the 28.6

Investing 59

Investing Pension Funds Stakes Assets 59

Pension Pulse

AUGUST 17, 2023

Financial reporting As at June 30, 2023, the annualized costs incurred for CDPQ’s activities, which include internal operating expenses, external management fees and transaction costs, were estimated at 55 cents per $100 of net average assets, compared with 48 cents as at December 31, 2022.

Pension Funds 52

Pension Funds Assets Debt Portfolios 52

The Big Picture

OCTOBER 17, 2023

And they also have a unique approach to feeds when they’re generating alpha, when they’re outperforming their benchmark, they take a performance fee. And when they’re not generating alpha, when they’re underperforming, they actually return fees. 00:24:31 [Speaker Changed] We refund the fee.

Investing 52

Investing Capital Returns Shareholders 52

Pension Pulse

MAY 24, 2023

Management fees increased by $165 million, due to an increase in average assets managed by external fund managers. Performance fees decreased by $621 million driven by fewer realization events in the private equity portfolio given the low transaction activity through the year, partially offset by strong performance of hedge funds.

Investing 52

Investing Stakes Pension Funds Assets 52

The Motley Fool

JULY 28, 2023

I know you had highlighted difficult comp on performance fees in the quarter. But other than that, we continue to invest pretty heavily in our talent, and we would expect to do so coming in the future. Weston Bloomer -- UBS -- Analyst Great, thank you. And then, my second question is on wealth solutions' organic.

Capital 100

Capital Business Services Liabilities Debt 100

The Motley Fool

APRIL 12, 2024

Total annualized organic base fee growth of 1% reflected seasonally softer flows earlier in the quarter before coming back to target in March. billion increased 11% year over year, driven by the impact of market appreciation over the last 12 months on average AUM and higher performance fees and technology services revenue.

Performance Fees 130

Performance Fees Assets Leveraging Shareholders 130

The Big Picture

JULY 4, 2023

You have no performance fee and no line of sight to getting to one anytime soon, and you have AUM shrinking by virtue of the losses, as well as the fact that LPs are now rightly redeeming. So the founder is zero in terms of a performance fee if all he has is the two of you and he’s allocated capital to you.

Hedge Funds 59

Hedge Funds Funds Banks Capital 59

The Motley Fool

OCTOBER 31, 2023

Blackstone is in the business of investing capital, and earning management and performance fees on that invested capital. Matt Argersinger: It is not Dylan, and the investors have taken that heart pretty hard on Blackstone's stock this week. Raising capital has become a bit of a struggle.

Depreciation 130

Depreciation Bidding Companies Capital 130

The Big Picture

MARCH 27, 2023

And all these formally high performers are now just so big, they’re very happy collecting the management fee and the performance fee matters less. Was at an issue before the financial crisis, or has so much money flowed into the space that it’s become self-defeating.

Hedge Funds 114

Hedge Funds Funds Assets Consultants 114

The Motley Fool

JANUARY 12, 2024

billion was 7% higher year over year, driven by the impact of higher markets on average AUM and higher performance fees. Fourth quarter and full year performance fees of 311 million and 554 million, respectively, increased from a year ago, reflecting higher revenue from liquid alternatives and long-only mandates.

Assets 130

Assets Shareholders Capital Asset Management 130

The Big Picture

JUNE 13, 2023

And I think this is where the industry should be heading.

Banks 59

Banks Asset Management Assets Capital 59

The Motley Fool

JULY 15, 2024

billion was 8% higher year over year, driven by positive organic base fee growth and the impact of market movements on average AUM over the last 12 months. Higher performance fees and technology services revenue also contributed to revenue growth. Our annualized effective fee rate was flat compared to the first quarter.

Assets 130

Assets Liabilities Leveraging Asset Management 130

The Big Picture

FEBRUARY 28, 2023

And that comes from having our capital invested alongside theirs, and having very strict requirements for performance before we get paid performance fees. LAYTON: I think the private markets is a fantastic asset class from an alignment of interest perspective. We win when our clients win.

Assets 59

Assets Due Diligence Private Equity Firms Private Equity Firms 59

The Motley Fool

JANUARY 25, 2024

Just wanted to get your sense of the confidence of growing the fee-related revenue, not including fee-related performance fees, just the base revenue, they had a double-digit pace in 2024. But just, Michael, the -- in talking about the pace of the activations of the funds.

Management Fees 100

Management Fees Banks Capital Assets 100

Private Equity Wire

JUNE 14, 2024

Phalippou’s findings come as performance fees face renewed calls to address what prominent politicians deem a “loophole.” The tax savings amount to hundreds of billions of dollars at current rates, with fees taxed at long-term capital gains rates—substantially lower than income tax rates.

Taxes 91

Taxes Capital Buyout Performance Fees 91

The Motley Fool

JULY 18, 2024

And then if you could just remind us of what the -- what you think the comp ratio overall on core plus is maybe that's kind of the by product. But a few questions in there, but basically, FRE margin, yes, ex core plus is the base question.

Assets 130

Assets Capital Financing Finance 130