skip to main content

Recognized as one of the most active and highly regarded investment management practices in the United States, our group represents all types of asset managers across the liquidity spectrum, including private equity funds, credit funds, hedge funds, venture capital funds, real estate funds, hybrid funds and family offices. We have successfully raised hundreds of billions of dollars for our clients, who benefit from our extensive market knowledge, industry-leading networking events and strong relationships with all major market participants. 

Matthew Goldstein Quoted in Private Equity International on Competitive Fee Structures in the Private Equity Fund Marketplace

November 25, 2020

Corporate partner Matthew Goldstein was quoted in a recent article in Private Equity International, “Flexible fee structures: Should you consider one?” The article discusses how some private equity firms are responding to changing investor preferences by offering competitive fee structures to incentivize invested capital over committed capital. Matt noted that private equity firms who proactively offer fee discounts on invested capital can garner goodwill with investors by showing flexibility, and can potentially raise capital more quickly than normal; however, such fee structures are unique to each manager’s investment strategy and most likely will not be utilized outside of the fund of funds marketplace. For example, Matt noted, private equity firm Hamilton Lane’s dual-fee structure, while innovative, “is exclusive to this particular manager’s investment strategy, as its clients will bear fund-level fees at multiple levels of the structure, whereas that is not the case in a traditional private equity buyout fund.”

» read the article

© 2021 Paul, Weiss, Rifkind, Wharton & Garrison LLP

Privacy Policy