Malfeesance, from C. Kin
Venture Capitalists' Pay Is Better Than Their Returns, WSJ Says
Sept. 14 (Bloomberg) — Returns on venture capital may have been poor of late, but the salaries and bonuses enjoyed by executives of venture firms are still gratifying, the Wall Street Journal said in its "Tracking the Numbers" column.
Here's the fee menu:
- Fees attached to committed capital.
- Transaction fees (paid out of a fund to investment bankers)
- Annual management fees (borne by the partners)
- Management and advisory fees paid by the acquired companies (remember the Grand Union debacle in the early '90s?)
- Exit fees (when a potfolio company is sold)
- Transaction fees (paid to investment bankers when a portfolio company is sold)
- And of course, the day-to-day recurring expenses
I wonder what the menu of a fund-of-private-equity-funds would look like?