Fees
How to Implement a Fund's Fee Structure
The issuer can specify the fee types and tiers to apply to a fund using a fee template.
A fee template defines tiers based on investment amount.
Fee templates also define the following flat fees:
Max Frontend
Backend
Performance fees, however, do not have tiers and are organized under common fees.
Example
The following table outlines the performance fees common for all investing orgs.
IP period
1%
Annually
Post IP period
0.5 basis points
Semi-Annually
The following JSON excerpt illustrates how this fee would be defined in the payload for creating and launching the fund.
"commonFees": {
"performanceFees": {
"hurdleRate": 1,
"highWatermark": {
"enabled": true,
"frequency": "Quarterly"
},
"grossOrNet": "Net",
"fees": [
{
"description": "IP period",
"value": 1,
"unit": "percentage",
"frequency": "Annually"
},
{
"description": "Post-IP period",
"value": 0.5,
"unit": "basisPoints",
"frequency": "Semi-Annually"
}
]
}
} The following table outlines the tiered and flat fees that need to be defined for Issuance A.
Management
NA
IP: 2% Annually Post IP: 1.5% Annually
Investor Servicing
0-4999999.99
75 basis points (one-off)
5000000-9999999.99
50 basis points (one-off)
10000000+
25 basis points (one-off)
Other (Bank Fees)
0-4999.99
1% Annually
5000-999999.99
0.5% Annually
Other (Placement Fees)
250000-999999.99
Client Pays 1.25% (one-off) GP Pays 0.75% (one-off)
1000000+
Client Pays 0.25% (one-off) GP Pays 0.75% (one-off)
Max Frontend
(flat)
1%
Backend
(flat)
1%
The following JSON excerpt illustrates how these fees would be defined in the payload for creating and launching the fund.
"feesTemplateData": {
"data": {
"name": "Fee Template 1",
"maxFrontend": 1,
"backend": 2,
"managementFees": [
{
"feesInfo": [
{
"description": "IP: annually of capital commitments",
"value": 2,
"unit": "percentage",
"frequency": "Annually"
},
{
"description": "Post-IP: annually on invested capital",
"value": 1.5,
"unit": "percentage",
"frequency": "Annually"
}
]
}
],
"investorServicingFees": [
{
"maxAmount": 4999999.99,
"feesInfo": [
{
"value": 75,
"unit": "basisPoints",
"frequency": "One-Off"
}
]
},
{
"minAmount": 5000000,
"maxAmount": 9999999.99,
"feesInfo": [
{
"value": 50,
"unit": "basisPoints",
"frequency": "One-Off"
}
]
},
{
"minAmount": 10000000,
"feesInfo": [
{
"value": 25,
"unit": "basisPoints",
"frequency": "One-Off"
}
]
}
],
"otherFees": [
{
"groupName": "Bank fees",
"groupDetails": [
{
"maxAmount": 4999.99,
"feesInfo": [
{
"description": "Bank fees - tier 1 - up to $4999.99",
"value": 1,
"unit": "percentage",
"frequency": "Annually"
}
]
},
{
"minAmount": 5000,
"maxAmount": 999999.99,
"feesInfo": [
{
"description": "Bank fees - tier 2 - $5000 - $999999.99",
"value": 0.5,
"unit": "percentage",
"frequency": "Annually"
}
]
}
]
},
{
"groupName": "Placement Fees",
"groupDetails": [
{
"minAmount": 250000,
"maxAmount": 999999.99,
"feesInfo": [
{
"description": "Client Pays",
"value": 1.25,
"unit": "percentage",
"frequency": "One-Off"
},
{
"description": "GP Pays",
"value": 0.75,
"unit": "percentage",
"frequency": "One-Off"
},
{
"description": "Total FA Comp",
"value": 2,
"unit": "percentage",
"frequency": "One-Off"
}
]
},
{
"minAmount": 1000000,
"feesInfo": [
{
"description": "Client Pays",
"value": 0.25,
"unit": "percentage",
"frequency": "One-Off"
},
{
"description": "GP Pays",
"value": 0.75,
"unit": "percentage",
"frequency": "One-Off"
}
]
}
]
}
]
}
},Expanded Data Model
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