Understanding Hedge Fund Fees: Implications for Hedge Fund Managers

K&L GATES CURRENT ENVIRONMENT More managed accounts with customized liquidity and fees, motivated in part by investors not wanting to be affected by other investors' redemptions. ■ Two-class system; star managers vs. everyone else; flight to quality and perceived safety. ■ More "private equity light" and hybrid funds, incorporating the types of protections used in private equity funds. Clawbacks ■ Hurdle rates ☐ ■ Realization-based carry for some less marketable asset classes klgates.com 6

View entire presentation