The state of fees

SCM Strategic Capital Management's sixth annual terms and conditions study surveyed 406 private equity funds, representing a range of strategies, sizes and geographies. The fundraising climate didn't truly drop off until the fourth quarter of 2008, so the effects of the financial crisis are not yet fully reflected in the results. For this reason, the results of the survey's analysis of characteristics of management fees remains oddly positive: fewer funds chose to reduce their management fees after the investment period, mega funds increased their management fees, and fewer funds charged fees below 1.61 percent. One suspects however that next year's statistics will not be as rosy.