Most private equity funds (90%) have carried interest provisions of 20%, with some funds, typically venture capital funds, charging carried interest of 25% or 30%, according to consulting firm Callan's "2024 Private Equity Fees and Terms Study."
During the investment period, the median management fee was 1.75% to 2.00%, which is consistent with prior Callan studies.
After the completion of the funds’ investment period, average management fees dropped by 20-25 basis points, dipping 1.96% to 1.72% year over year. The median fell from 2.00% to 1.80%.
Management fees varied by investment strategy. Venture capital charged the most with an average management fee of 2.16%, while distressed and restructuring funds charged the least at an average of 1.36%.
