appeared to have glossed over. Namely, such structural items as fee waivers (in which general partners effectively sidestep taxes by replacing part of their own fund commitments with management fees), hurdles (i.e., the level of performance a fund must achieve before generating carried interest) and fee offsets (portion of ancillary fees -- typically charged to the portfolio company -- that the GP collects in lieu of fund management fees).
Unfortunately, things quickly went off the rails. Jelencic first asks if, when viewing the pension's comprehensive annual financial report (CAFR), he should assume that a PE fund's net return is net of all fees (not just 2/20, but additional operating fees like legal, auditing, etc.). Desrochers responded by saying "I don't know," and then returning to his high-level fee dissertation.
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