Private Equity Fund-of-Funds Fee Calculator for LPs
Compare the two layers of fees and carry paid by private equity fund-of-funds investors.
- If a fund earns 2.5 times our money before fees, how much would we keep after both fund-of-funds fee layers?
- How much would we keep if the fund of funds charges 1% a year and takes 10% of profits?
- How much more would we keep if the fund-of-funds yearly fee fell from 1% to 0.5%?
Layered economics at a glance
Estimate based on the inputs shown.
Estimated LP value after fees and carry for the funds held, then the fund of funds.
How it is calculated
Gross value → underlying fees and carry → FoF fees and carry → LP net value
The model starts with a standard $100 base and takes out yearly fees. It applies each layer of carry in turn, only to profits. It does not model actual cash-flow timing, fee step-downs, hurdles or waterfalls.
Read the result in context
An LP may pay fees and carry both to the funds held and to the fund of funds. Check what the LP keeps after each layer. Simply adding the stated rates will not show the full effect.
What fees do fund-of-funds investors pay?
They may pay fees and carry to the funds held and to the fund of funds. The actual agreements set the terms.
What does value retained by LP mean?
Divide the estimated value left after both layers by the value before either layer.
Does this include fee offsets or hurdles?
No. This is a quick estimate. Actual fund and FoF terms may include offsets, hurdles, fee step-downs and other rules.