Fund Manager Compensation

Course Overview

This module explores alignment and incentives in private capital funds. We will start by discussing the need for alignment and incentives, including its role in principal-agent relationships. We will then analyse the key pillars of alignment and incentives – personal and team motivation, GP commitment, carried interest, management fees and remuneration.

Key Takeaways

• Explain the purpose of alignment and incentives.

• Describe the basic workings of alignment and incentives.

• Analyse the key pillars of alignment and incentives.

• Describe additional factors that help build alignment.

• Discuss how GP commitment, carried interest and management fees could evolve.