Comment Comment by snisarenko Yeah, I guess something like that.Other approach is for LPs to reject any percentage based management fees.I think a skin in the game payout structure for VCs would be better.- VC has to commit x% (5%)? of their net worth into the fund- VC gets bonus payouts only on individual investments that are net profitable (something like 3% of the net profit from the invested LP money)- Could also be augmented with a Flat Yearly Salary/Fee to cover basic operations (not a percentage based fee)If I was an LP thats how I would do it. No way would I agree to a flat percentage mangement fee. parent snisarenko 3 years ago
Other approach is for LPs to reject any percentage based management fees.
I think a skin in the game payout structure for VCs would be better.
- VC has to commit x% (5%)? of their net worth into the fund
- VC gets bonus payouts only on individual investments that are net profitable (something like 3% of the net profit from the invested LP money)
- Could also be augmented with a Flat Yearly Salary/Fee to cover basic operations (not a percentage based fee)
If I was an LP thats how I would do it. No way would I agree to a flat percentage mangement fee.