Questions tagged [2 and 20 rule]

WhisperWind Tue Oct 29 2024 | 5 answers 1523

The '2 and 20' rule in private equity refers to a common fee structure where fund managers receive a 2% management fee and 20% of the profits as a carried interest or performance fee. This structure allows managers to participate in the upside of their investments while also earning a fixed management fee.