Video: Fees Outside the Offset Paradigm

March 02 2015

Experts dive into a fund formation topic that has garnered much attention: fees charged by affiliates of private equity firms to portfolio companies that fall outside the traditional deal-fee arrangements. While traditional fees are usually shared with LPs, many firms charge fees to portfolio companies that fall outside these offsets. What do GPs need to know about what the market and regulators think about these non-offset arrangements?