# kaal:claim:2959730-012

**Claim.** Private investment fund management fees deviate from the market rate of 1.5% to 2% of the fund's capital commitments because affiliates and other employees of the investment manager who invest in the fund are not charged management fees.

**Type.** mechanism  **Support.** argued

**Holds when.**

- funds with affiliate or employee investors

**Source quote.**

> In recent years, private investment fund management fees can deviate from the market rate of 1.5%–2% of the fund's capital commitments because affiliates or other employees of the investment manager who invest in the fund are not charged management fees

**From.** Wulf A. Kaal, *Blockchain Applications and Fee Structure Developments in Private Investment Funds* (2017), III. Factors Creating Downward Pressure on Fees, page 7

**Cite as.** Wulf A. Kaal, Blockchain Applications and Fee Structure Developments in Private Investment Funds (2017). SSRN: https://ssrn.com/abstract=2959730

**Verify.** sha256 of source PDF `ebd86972d8817b0c1c80326ae5564476983cedba3f258ff3b2610f156b93fb50` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202017%20-%20Blockchain%20Applications%20and%20Fee%20Structure%20Developments%20in%20Private%20Investment%20Funds.pdf

**Topics.** private-funds

**Keywords.** management-fees, fee-differentiation, oversight, private-funds

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.