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Beyond Qualified Clients: Are Performance Fees Coming To A Registered Fund Near You?
Goodwin Procter LLP are most popular: within Criminal Law topic(s) Traditionally, the Investment Advisers Act permits investment advisers to charge performance-based fees to registered funds only if all investors are “qualified clients” — investors with at least $1.4 million under an adviser’s management or a net worth exceeding $2.7 million.
Beyond Qualified Clients: Are Performance Fees Coming to a Registered Fund Near You?
Quick Summary Traditionally, the Investment Advisers Act permits investment advisers to charge performance-based fees to registered funds only if all investors are “qualified clients” — investors with at least $1.4 million under an adviser’s management or a net worth exceeding $2.7 million. The SEC’s Division of Investment Management is considering a rule proposal that would allow advisers to charge performance-based fees to a broader range of clients.
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