She Has Leverage

Fund economics

Fee Waiver

A fee waiver is an arrangement in which a GP gives up some management fees in exchange for an interest in fund profits or another contractual economic interest, on its specific terms. Ask how much of the GP commitment is cash and how much is fee waiver.

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Knowing the language helps you follow the conversation. Knowing what to ask is how you participate in it.

Understanding the terms is a first step. The Aligned Capital Program uses them to teach you how to evaluate a fund and prepare the questions to ask its manager.

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