Fees and expenses, exactly as the LPA says.
Management fees on the right basis for the right period, offsets applied automatically, and shared expenses allocated across funds and co-investors by a rule you can show an LP.
How are private fund management fees and expenses calculated?
Management fees are usually a percentage of commitments during the investment period and of invested capital or NAV afterwards, adjusted for step-downs, offsets from portfolio-company fees and investor-specific waivers. Fund expenses are charged per the LPA, and expenses shared by several funds or co-investors must be allocated by a consistent, documented method.
Expense allocation is one of the most frequently cited issues in SEC examinations of private fund advisers. The fix is not a better spreadsheet; it is a rule, applied the same way every time, with a record of each application. FUN/D stores the allocation rule, applies it to each shared expense, and keeps the trail.
FUN/D is the books-of-record product from the company behind InvestorPortalPro: where IPP is a portal for firms whose accounting lives elsewhere, FUN/D is the ledger, with the portal as its read side.
Fee bases
Commitments, invested capital, NAV or a blend, switching automatically at the end of the investment period.
Step-downs and offsets
Scheduled step-downs and portfolio-company fee offsets applied per the LPA.
Waivers and rebates
Investor-specific terms from side letters applied without a separate model.
Shared expenses
Allocated across funds, parallel vehicles and co-invests by commitment, invested capital or a custom key.
Broken-deal costs
Allocated to co-investors or absorbed per your policy, with the policy recorded.
ILPA disclosure
Fees, offsets and expenses flow to the ILPA Reporting Template.
Questions we get about this
Can LPs see how their fee was calculated?
Yes — the calculation is traceable and can be shown in reporting.
Does it handle fee holidays or catch-up fees for late closers?
Yes, as part of equalization at each subsequent close.
Related reading
How private fund management fees are calculated · Management fee offset · Management fee
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