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GP · Fund · Quarterly

Quarterly management fee

This quarter’s management fee is checked LP by LP and booked in both the fund and the management company.

PlanQuarterly management fee

  1. Check the fee LP by LP

    Held

    Operator checks each LP’s fee against the LPA, side letters, your GP commitment’s waiver and board fees to offset, and drafts the entries for both books.

    Operator
  2. Sign off the fee

    Held

    Your accountant reviews the fee LP by LP, with Operator’s citations, and signs it off.

    PersonAccountant approves
  3. Post the fund’s accrual

    Held

    Corrects the quarter’s drafted fee accrual in the fund’s books and posts it.

    API actionAccountant confirms
  4. Book it in the management company

    Held

    Posts the matching fee receivable in the management company’s books.

    API actionAccountant confirms
  5. Pay the fee

    Held

    You pay the fee from the fund’s bank account and book the payment.

    PersonGP approves
  6. Check the fee was paid

    Held

    Operator checks the fee payable has cleared and flags it to you if it hasn’t.

    OperatorWaits 5 business days after the payment

The plan as it runs: each step waits for the one before it, and stops at its gate until the owner approves.

At a glance

Who runs it, and when

Who runs it
GP
What starts it
A new fee quarter starts, with the quarter’s fee accrual already drafted from your fee schedule.
How often
Quarterly
Vehicle
Fund

Ask Operator

Start it in a sentence

Ask Operator in chat. It drafts the plan for your fund, and nothing runs until you release it.

  • You

    Book this quarter’s management fee and check the side-letter discounts.

  • You

    Is the Q4 fee right? Then post it.

  • You

    Charge the management fee for Fund II.

The outcome

The quarter’s fee is checked LP by LP, posted in the fund and the management company to match, and confirmed paid.

What it proves

  • Checks every LP’s fee against side letters, waivers and offsets, citing the documents.
  • Posts nothing until your accountant has signed off the fee.
  • Books the fund and the management company from the same figures, so they match.
  • Waits a week after payment, then checks the fee cleared and flags it if not.
  • Shows a junior the fee total and you each LP’s fee.

Run it on your fund

Talk to the team about running this playbook on your own fund.