A global survey of early-stage investors focused on hedge
funds shows that the majority of those based in the
Asia-Pacific demand a significant discount on performance fees
charged by start-up hedge fund managers.
Hedge fund managers typically set a 20% performance
incentive fee but the survey revealed that APAC investors
demand on average discount of 611 basis points for allocating
to funds at the early stage of a fund’s life
The Citi Prime Finance survey showed that 78% of Asia-based
respondents expect discounts ranging between 500 to 1000
Investors in the US, however, appear to be even...