Deutsche Bank Alternative Investment Survey Details Hedge Fund Fee Rates, Negotiation Strategies and Structure Trends (Part Two of Two)

The results of the 15th annual Alternative Investment Survey, compiled from the responses of 460 global allocators representing nearly $2 trillion in hedge fund assets, have been released by Deutsche Bank Global Prime Finance. This second article in a two-part series describes the portion of the survey detailing typical fee rates, fee negotiations and fee structures, as well as the preferences of allocators. The first article examined the survey results concerning asset-flow trends, including the types of structures and factors that impact those decisions by allocators. For more on fees charged by private funds, see our two-part series on modified high water mark provisions: “May Reduce Risk and Enable Hedge Fund Managers to Retain Talent” (Jun. 4, 2015); and “May Be Difficult for Managers to Market and Implement” (Jun. 11, 2015); as well as our two-part series on tiered management fees: “May Help Hedge Fund Managers Attract Institutional Investors” (Jun. 25, 2015); and “Practical Considerations for Hedge Fund Managers” (Jul. 9, 2015).

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