GP/Entrepreneurial Fee

7 Replies

Is it typical for a general partner to charge investors a one time entrepreneurial fee (sorry, it's an appraiser term) for managing the investment, raising the funds, getting the financing and managing the cap ex up front when the investment is initiated at closing? 

I know the investors (LP's) will be getting the majority of the cash flow and the back end profits but is this typical to charge an upfront fee at closing for all the work involved? 

@Joseph Pytcher

It is not unusual though it can be structured many different ways. Sometimes it just higher ownership (sometimes known as a promote) and sometimes it is an actual fee. Is the % reasonable? Are they also charging an ongoing management fee every year?