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TSWP


Total Posts: 456
Joined: May 2012
 
Posted: 2022-04-13 14:34
Hi guys,

I will soon discuss a deal with a small private bank in Europe to distribute a Luxembourg fund that I am considering launching in Q3 2022.

I have never done this kind of deal before, so I just wanted to ask if anybody knows what % of the manager's fees the bank will take to sell/promote the fund to its clients.

The fund is an equity long/short US Futures alternative fund, not an UCITS, the clients are HNWIs, Europeans.

Any other input you may have is always appreciated!

Thanks.


ronin


Total Posts: 708
Joined: May 2006
 
Posted: 2022-04-21 10:15
Well done, and good luck.

As in everything, it depends. It may be up to 100% of the management fee, which leaves you with the performance fee. Especially for a start-up fund.

But, and it's a big but, you have to make sure you can cover operational costs. Otherwise it's a big DD flag.

Structure the deal like that. You keep first x amount of dollars for operations, and beyond that they get increasing % of the management fee.

"There is a SIX am?" -- Arthur

TSWP


Total Posts: 456
Joined: May 2012
 
Posted: 2022-04-27 17:31
Thanks for your very helpful insight, as always.
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