Fees & Expenses
Define the management fees and expected fund expenses.
Last updated
Define the management fees and expected fund expenses.
Last updated
By default, Tactyc will start off with as management fee of 2.0% on committed capital for 10 years. You can edit the following:
Value: Fee Percentage (%)
Fee Basis Methods: We support multiple fee-basis methods (see below)
Start Month: the starting month for a fee tier
End Month: the ending month for a free tier.
Committed Capital
In each period, fee is charged based on the total committed capital to date by LPs only
Called Capital Each Period
Fee is charged based on the called capital in that period.
Gross Cumulative Called Capital
Fee is charged on cumulative called capital to date.
Net Cumulative Called Capital
Fee is charged each period based on the total called capital to date from LP’s less capital returned to LP’s to date
Cumulative Invested Capital
Fee is charged based on cumulative invested capital (initial and follow-on investments) to date
Fair Market Value
Fee is charged based on the fair market value of active investments each period
Unrealized Investments
Fee is charged based on the total cost basis of unrealized active investments
In each period, fee is charged based on the total committed capital to date by LPs only
2.0% Fee
Total Committed Capital in Period 1: $50mm Total Committed Capital in Period 2: $100mm
Fee in Period 1: $50mm x 2.0%
Fee in Period 2: $100mm x 2.0%
Fee is charged based on the called capital in that period.
2.0% Fee
Called Capital in Period 1: $1mm
Called Capital in Period 2: $0mm
Called Capital in Period 3: $2mm
Fee in Period 1: $1mm x 2.0%
Fee in Period 2: $0mm x 2.0%
Fee in Period 3: $2mm x 2.0%
Fee is charged each period based on the total called capital to date from LP’s less capital returned to LP’s to date
2.0% Fee
Cume Called Capital in Period 1: $10mm
Cume Capital Returned to LP’s in Period 1: $0mm
Cume Capital in Period 2: $20mm
Cume Capital Returned to LP’s in Period 2: $2mm
Fee in Period 1: ($10mm - $0mm) x 2.0%
Fee in Period 2: ($20mm - $2mm) x 2.0%
Fee is charged based on cumulative invested capital (initial and follow-on investments) to date
2.0% Fee
Cume Invested Capital in Period 1: $10mm Cume Invested Capital in Period 2: $20mm
Fee in Period 1: $10mm x 2.0%
Fee in Period 2: $20mm x 2.0%
Fee is charged based on the fair market value of active investments each period
2.0% Fee
Unrealized FMV in Period 1: $10mm
Unrealized FMV in Period 2: $20mm
Fee in Period 1: $10mm x 2.0% Fee in Period 2: $20mm x 2.0%
Fee is charged based on the total cost basis of unrealized active investments
2.0% Fee
Cost basis of unrealized Investments in Period 1: $10mm
Cost basis of unrealized Investments in Period 2: $20mm
Fee in Period 1: $10mm x 2.0%
Fee in Period 2: $20mm x 2.0%
Let’s say your fund’s fee structure is:
2.0% for first 5 years
1.5% thereafter
To model this structure, you will create 2 different fee tiers as follows. To add a fee tier, click on Add Fee Tier at the bottom of the Management Fees section.
You can create multiple fee profiles for each LP and in a later Limited Partners section, point LP’s to their specific fee. To create multiple fee profiles,
Click on “+” icon next to Default Fee Profile to create a new fee definition
Enter a name for this fee profile for e.g. Class B LP Fees and click on Add Fee Tier. This will create a new fee profile from scratch.
Later in the wizard, in the Limited Partners section, you can point your Class B LP’s to this fee profile.
Management fee recycling means the fund can recycle exit proceeds up to the level of management fees earned to date. To turn this on, fore each fee tier, open the Optional: Management Fee Recycling section and enter the % of fees that can be recycled from that tier.
Similar to management fees, fund expenses can be defined on a line-item basis.
Click on Add Expense
Enter the Expense Category
Enter the expected Monthly Amount
Enter the Start Month and End Month i.e. the term of the expected expense
