Performance Fee

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Definitions
Performance Fee
Performance Fee Incentive Fee Investment Management Compensation Structure Fund Performance Investor-Manager Alignment Fee Calculation
A performance fee is a form of compensation structure for investment management services based on the fund’s positive performance over a specified period. It aligns the interests of the investor and the fund manager.
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Definitions
Two and Twenty
Two and Twenty Hedge Funds Management Fee Performance Fee Compensation Structures Asset Management
Two and Twenty is a typical formula for compensation of hedge fund managers, where 2% of total asset value is charged as a management fee, and an additional 20% of profits is taken as a performance fee.
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