Management fee calculation
The quarterly fee computed against the LPA, charged to the right entity, and shown with the working.
Join waitlistInstalment, quarter beginning 01 July
The provision charges on cost that has not been permanently written down. The agreement never says what that means.
The reading that lowers the basis lowers your own fee.
A management fee instalment for the quarter beginning 01 July, priced for eighteen of nineteen positions at 184,500.00, being 36,900,000.00 of acquisition cost at 2.00% per annum for one quarter, with the nineteenth line marked held and both the total and the general partner’s signature left blank. Ruled off at the foot of it, the question: the provision charges on cost that has not been permanently written down and never defines the term. Carried at cost, Co. 09’s Series A preferred of 2,600,000.00 adds 13,000.00 to the quarter. Written down, it adds nothing. The two readings are 13,000.00 apart and stay that far apart every quarter the position stands, and the reading that lowers the basis lowers the manager’s own fee.
18 priced, 1 held for you
Eighteen positions price off the schedule without anybody being asked anything. The nineteenth turns on a word the agreement never defines, so the quarter is 197,500.00 or 184,500.00, and 13,000.00 apart again the quarter after.
The reading that lowers the basis lowers your own fee, which is exactly why we will not pick it quietly. It comes to you as a question with both answers already priced.
Rules-based, and expensive to get wrong in a way an LP will notice. Computed and presented for your sign-off, never posted silently.
Venture fundsWe do the work. You verify it.
- Maintaining the schedule the fee is computed off: investment by investment, at the security level rather than the company level, reduced for every realization, write-off and write-down.
- Computing the quarterly installment off that schedule, as one quarter of the annual rate on the basis your agreement names, the same way every quarter.
- Presenting it with the working shown, so a number that lands on an LP's capital account statement can be traced back to a line in a document.
- Chasing the transaction, monitoring and director fees that offset it, allocating them across funds where more than one holds the company, and carrying the excess forward when an offset is larger than the installment it credits.
- Escalating the calls that move the fee instead of picking a reading. Where a position is arguably written down, you get both answers priced and neither one chosen for you.
- The general partnerSigns the installment off before it is charged, and makes the write-down determination. That call lowers the manager's own fee, which is exactly why a service provider must not make it quietly.
- Your fund administratorAllocates the fee across partners and produces the statements the LP reads. We hand over a computed number with its working; the administrator books it.
- Your auditorTests the fee against the fund documents at year end. We keep the schedule that makes that a short conversation, and we do not opine on it.
We compute the fee and show the working. We do not determine whether a position has been permanently written down, and we do not charge the fee: the general partner signs the installment off first, every quarter, and nothing posts silently.
What we ask on the first call
The answers decide whether this is two hours a month or not something we should take on. You get that on the first call rather than the third.
- 01What is the fee basis, and does it step down? In venture the rate usually steps rather than the base, and a large share of funds run a flat fee with no step at all.
- 02Where does the fee provision actually live? In venture funds it often sits in a separate management agreement rather than in the LPA, and we work from whichever document governs.
- 03Are there side letter discounts, and how are they drafted: a reduced rate, or a rebate at the capital account?
- 04Are there transaction, monitoring or director fee offsets? At what percentage, and does an excess carry forward to the next payment date?
- 05Do you run a successor or parallel fund holding the same portfolio company? The offset has to be allocated across funds and reduced in the order the documents state, and doing those two steps the wrong way round is what the SEC charged an adviser for in August 2025.
- 06Who computes the fee today, and who signs it off before it is charged?
- When it runs
- Quarterly, per the LPA
- What it costs you today
- 1-3h a quarter
- What it touches
- Sheets, QuickBooks, Xero, The LPA itself
- Grade B
- Runs, with a hop we handle
Pricing
Two ways to work with us.
Have us run the recurring back office, or have us build you a system you own. We are what makes the administrator you already pay for usable by a two-person firm.
We run your back office
What moves it: how many entities, how many LPs, and what your positions sit on.
Done-for-you operations, handled on the cadence each task needs, for investment firms of any size.
- Your administrator's draft lands day 30. Our pass is done by day 34. Your LP pack goes out day 45.
- Your auditor's list closed before 31 December, not reconstructed in March.
- No per-LP fee. No charge per capital call. No add-on for an extra SPV.
- A dedicated operator who knows your firm
- Works inside your existing stack: custodians, QuickBooks, Sheets
- One monthly rate, no hourly billing. Pause or cancel anytime.
We build it, you own it
We scope and build the automations that run the work. You own the system outright, and it keeps running without us.
- A scoping call to map the workflows worth automating
- Custom automations built to your firm's process
- You own the system: no lock-in, no per-seat fees
- A custom dashboard over the systems we connect
- Full handover so your team can run it
- 3 months of maintenance and support included
- Optional care plan after, at a reduced monthly rate
Run it or build it. Both start here.
Join the waitlist.
We are taking a small number of firms to begin with. Leave your email and we will come back with what we would handle, on what cadence, and what it costs.