# kaal:claim:2998033-027

**Claim.** Private fund management fees have compressed materially: the historical two percent of commitments has shifted in recent years to roughly 1.0 percent for new managers and 1.5 to 1.8 percent for established managers with an adequate track record.

**Type.** empirical  **Support.** evidenced

**Holds when.**

- describes private equity and hedge fund fee practice as of 2016 and 2017

**Source quote.**

> However, the historical fee of 2% of commitments through the reinvestment period, then 2% on the cost basis for the investments/value of fund has shifted in recent years closer to 1.0% for new managers and 1.5-1.8% for established managers with an adequate track record.

**From.** Wulf A. Kaal, *Blockchain Innovation for Private Investment Funds* (2017), IV.3. Pressure on Fee Structure, page 24

**Cite as.** Wulf A. Kaal, Blockchain Innovation for Private Investment Funds (2017). SSRN: https://ssrn.com/abstract=2998033

**Verify.** sha256 of source PDF `aafb1be3c25cd33da477d759df9ca2f856f0a8fe133d6396da2e75d0af573dbd` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202017%20-%20Blockchain%20Innovation%20for%20Private%20Investment%20Funds.pdf

**Topics.** private-funds

**Keywords.** fee-structure, management-fees, fee-compression, private-funds

**Related claims.**

- restates: https://wulfkaal.github.io/claims/2959730-005

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