The 2024 Preqin Private Capital Fund Terms Advisor

When evaluating managers, LPs report heightened interest in fee structures. In our 2024 Fund Terms Advisor report, we consider the effect of the fundraising environment on fees and terms, and analyze recent developments with a special focus on management fee headline rates versus net fees paid, changes in LP minimum and GP commitments, and non-commingled, close-end structures. Our consolidated data pack contains fee and terms data from Preqin, Preqin's Term Intelligence, and FOIA requests.

• Buyout and real estate mean management fees have the lowest reading in 20 years

• BDCs and open-ended real estate funds may offer lower fees than their closed-end counterparts

• For LPs sensitive to cash flows, carry mechanics can have a meaningful economic effect

• Infrastructure mean management fees crested above 2% in 2023 but have declined based upon their relationship to fundraising