Fee Structure

See: Carry.

Note that the fee structure of any given investment fund just refers to how overpaid the General Partners of that fund will be. So in a "two and twenty" fee structure, the GPs are overpaid 2% per year as a management fee, whether they do well or not. And then they are paid 20% of the profits of the fund.

Other fee structures are way different. For an index fund, for example, it's a flattish fee of, say, 0.4% per year to manage a given sector fund. That's it. No notional profit participation or carry. No extra fees. Just a burger, fries, and a shake for $6.95, tyvm.