Private Capital Fund Terms Advisor 2026: Part 2

After examining terms and governance in part one, in the second part of this year’s Private Capital Fund Terms Advisor we consider the effect of the fundraising environment on fees and analyze management fee headline rates in the context of fund performance. Our consolidated data pack contains fee and terms data from Preqin, Preqin’s Term Intelligence, and Freedom of Information Act requests.

• Mean headline buyout management fees fell for a fifth consecutive year to a record-low 1.65% for 2026-vintage funds

• 65% of 2020–2025-vintage VC funds have no hurdle rate, while premium carry structures feature in 56% of LPAs for the same vintages

• Direct lending management fees rose for a fifth consecutive year, reaching a 10-year high of 1.50%

• Infrastructure funds led in early- and large-commitment discounts in LPAs, while real estate investors were most likely to receive lower fees through side letters