Management Fee

A management fee is a charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise for selecting investments and managing the portfolio. Investors (LPs) in a fund pay this fee, normally 1.0% to 2.0% of net asset value per annum, to the fund manager in return for them managing the fund. This fee is typically paid either monthly or quarterly and is not contingent on any kind of performance.