A group of friends were discussing yesterday the real cost increasing AUM for a hedge fund using third party fund raisers and intitutinal sales team.
Let’s say the Hegde Fund charges 1.5/20 with 50M AUM
If a third party raises for the fund 1M extra. How much should the fund pay and for how long?
Here are some options people about of finance talk abou
A. Only from the management fee 1/3 for the first year.
B. Both performance and management for the existence os the client. About 50% or…