Cheaper Princess – Princess Private Equity has agreed a fee cut with its manager. With effect from 1 July 2020, while the headline rate remains the same (0.375% per quarter), the fee will be based on assets excluding unfunded commitments (money that Princess has promised to invest in private equity funds or companies but hasn’t actually spent yet). In addition, liquidity invested in the open-ended Partners Group Global Senior Loan Master Fund SICAV, which is managed by the investment manager, will be charged at 0.6% a year and excluded from the normal asset management fee.
Performance fees remain in place – 15% of returns over 8% a year on direct investments and 10% of returns over 8% a year for secondary investments.
There is no second layer of fees if the fund invests in other vehicles managed by the investment manager.
The notice period is reduced from three years to two years and notice cannot be given before July 2022.
[This is a step in the right direction for Princess Private Equity. Apart from the overly long notice period, the biggest problem we have is calculating performance fees on individual assets rather than the whole fund – but this is common practice in the private equity industry.]
PEY : Cheaper Princess