The convention of charging a 2% management fee in the private-equity industry is falling from favour, according to a survey by law firm MJ Hudson.
While many funds still charge investors 2% of committed capital, the largest funds charge less as investors have put pressure on firms to justify their fees, the law firm said. MJ Hudson surveyed 68 buyout, infrastructure, real estate and venture-capital funds targeting a total of €154 billion. Buyout funds accounted for two-thirds of the funds polled.
