#9TDAYVC-DAY-12 📌What is Management Fees? 📌What is a Expense for VC? 🎯Management Fees- Management Fees & Expenses contributed to the fund as per investment agreement between fund & Investment Manager.No SEBI Regulations in this Matter. It depends on India & Overseas Scenarios. Usually The Management fees is commited by the fund to investment manager during the capital Commitment in that period which ranges upto 2.5% of the fund. 🎯This fees only taken from the invested Capital but not to the committed capital. This fees has to be paid even though the fund is not generating any returns or profits. This is a issue with Indian Investors. The frequency of payment of Management fees may be quarterly, semi quarterly & annually based on the mutual agreement. Expenses are payable on management fees & usually charges are extra. Disclosures on Fees Structure are made in the Initial offer literature called Private Placement Memorandum(PPM) Follow Adithya Pappala for more VC👇
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