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.
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"
}
]
}
]
}
]
}
},
