Asset management fee on equity vs AUM?

On equity: 1% of $5M LP equity = $50k/year regardless of asset performance. On AUM: 0.5% of $20M asset value = $100k/year, rising as asset value grows.

How do AM fees affect LP returns?

1% AM fee on $5M equity over 5 years = $250k cumulative, reducing LP IRR by approximately 100–150bps depending on cash flow timing.

Are AM fees disclosed in PPMs?

Yes — all fees must be disclosed in the Private Placement Memorandum (PPM). Read the full fee schedule: AM fees, acquisition fees, disposition fees, property management fees.

Asset Management Fee on Equity Calculator

Calculate annual asset management fee as percentage of invested equity or asset value. Typical range: 1–2% of equity or 0.3–1% of asset value. Impact on LP returns modeled over hold period.

Principal ($)

Annual Rate (%)

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Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate annual asset management fee as percentage of invested equity or asset value. Typical range: 1–2% of equity or 0.3–1% of asset value. Impact on LP returns modeled over hold period. Use the asset management fee result to inform your calculation.

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Asset Management Fee on Equity Calculator

How to Use

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Frequently Asked Questions

Asset management fee on equity vs AUM?

How do AM fees affect LP returns?

Are AM fees disclosed in PPMs?