{"id":64910,"date":"2017-08-01T00:42:00","date_gmt":"2017-07-31T22:42:00","guid":{"rendered":"http:\/\/beta.next-finance.net\/note\/private-capital-fund-managers-raise-fee-rates-in-2017\/"},"modified":"2017-08-01T00:42:00","modified_gmt":"2017-07-31T22:42:00","slug":"private-capital-fund-managers-raise-fee-rates-in-2017","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/note\/private-capital-fund-managers-raise-fee-rates-in-2017\/","title":{"rendered":"Private Capital Fund Managers Raise Fee Rates in 2017"},"content":{"rendered":"<p>The <em>2017 Preqin Private Capital Fund Terms Advisor<\/em> finds that several private capital fund types are raising their<br \/>\naverage management fees among funds of more recent vintages. Unlisted infrastructure funds have seen mean<br \/>\nmanagement fees rise marginally from lows of 1.38% for 2014 vintage funds to 1.48% for 2017 vintage funds and<br \/>\nvehicles in market. Similarly, private equity buyout funds have seen their mean fees rise from 1.85% for 2015 vintage<br \/>\nfunds to 1.94% for 2017 vintage and raising funds. Across the same period, closed-end private real estate funds have<br \/>\nseen average fees go from 1.41% to 1.57%, and 2017 vintage real estate funds are charging the highest average fees<br \/>\ntracked by Preqin in a decade.<\/p>\n<p>Key Private Capital Fund Terms Facts:<\/p>\n<ul>\n<li> Private equity buyout, funds of funds, real estate, infrastructure and distressed debt funds have all seen<br \/>\nrising mean management fees in more recent vintage years.<\/li>\n<li> Small buyout funds of less than $500mn have seen their average management fees fall in 2017 vintage vehicles,<br \/>\nbut funds larger than $500mn are charging higher average fees than in previous years.<\/li>\n<li> By contrast, mean management fees for growth, venture capital and natural resources funds have continued to<br \/>\nfall, following recent trends across the industry.<\/li>\n<li> Carried interest rates have remained mostly level over the past 12 months. 82% of private capital funds charge<br \/>\na 20% performance fee, while 6% charge a higher rate and 12% charge a lower one.<\/li>\n<li> Hurdle rates have lowered compared to 12 months ago. The proportion of funds with a hurdle higher than 8%<br \/>\nfell from 22% of recent funds as of June 2016 to 18% a year later. The proportion using a hurdle lower than 8%<br \/>\nremained static at 30% of recent funds.<\/li>\n<li> As of June 2017, the total level of capital being held by fund managers as dry powder stood at a record $1.57tn,<br \/>\nan increase of $156bn from the end of 2016.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The 2017 Preqin Private Capital Fund Terms Advisor finds that several private capital fund types are raising their<br \/>\naverage management fees among funds of more recent vintages. Unlisted infrastructure funds have seen mean<br \/>\nmanagement fees rise marginally from lows of 1.38% for 2014 vintage funds to 1.48% for 2017 vintage funds and<br \/>\nvehicles in market<\/p>\n","protected":false},"author":20,"featured_media":64908,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1481],"tags":[1655,1651,1437,1724,2243,2091,1702],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/64910"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=64910"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/64910\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/64908"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=64910"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=64910"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=64910"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}