Plain-English guide
How to understand private investment fees
The visible management fee may be only one layer of what reduces the cash ultimately available to you.
Map fees to moments
Look separately at acquisition, ongoing ownership, performance, financing, administration, transfer, and exit. Ask whether a percentage applies to invested capital, net asset value, gross assets, committed capital, revenue, or profit; the same percentage can produce very different dollars.
Ask for dollar examples
Request a worked example using your investment amount. Confirm whether expenses paid inside the vehicle are already reflected in reported performance and whether affiliates receive compensation.