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Basic Question 5 of 16

Management fees of private equity funds are paid to ______.

A. GPs only
B. LPs only
C. both GPs and LPs
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User Contributed Comments 2

User Comment
ankurwa10 See the GP as the Investment Manager and LP as investors. So, investors would not really manage their own money (why go a PE player then at all), hence only the GP takes the management fee.
ibrahim18 @ankurwa10. You seem to be the author of AN. Nice work. Comments on every section
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Your review questions and global ranking system were so helpful.
Lina

Lina

Learning Outcome Statements

explain features of private equity and its investment characteristics

CFA® 2025 Level I Curriculum, Volume 5, Module 3.