Private Equity Fund-of-Funds Fee Calculator for LPs
For fund-of-funds investment teams comparing two layers of private-equity fees and carried interest.
- As an LP, how does a 2.50x underlying return change after fund and fund-of-funds economics?
- How do private-equity fund-of-funds fees and carry change an LP’s net MOIC?
Layered economics at a glance
Estimate based on the inputs shown.
How it is calculated
Gross value → underlying fees and carry → FoF fees and carry → LP net value
The model uses a normalized $100 basis, annual fee drag and sequential profits-only carry. It does not reproduce actual cash-flow timing, fee step-downs, hurdles or waterfalls.
Read the result in context
Institutional fund-of-funds investors can bear economics at both the underlying-fund and portfolio-vehicle levels. Investment teams should assess each layer against the value retained by the LP rather than simply adding the stated rates.
What fees do fund-of-funds investors pay?
They may bear management fees and carried interest at both the underlying-fund and fund-of-funds levels, subject to the actual agreements.
What does value retained by LP mean?
Estimated net ending value divided by the gross ending value before either layer.
Does this include fee offsets or hurdles?
No. It is an illustrative quick estimate; actual fund and FoF documents may include offsets, hurdles, step-downs and other terms.