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Adithya Pappala

Stealth • 1m

#9TDAYVC-DAY-12 🎯Types of Expenses for VC? 🎯What is a Self-Managed Fund? 🎯Organisational Expenses: These are costs for VC Funds which includes such as Incorporation Costs, Statutory Compliance Cost of the Funds, Placement Commissions, Distribution Fees to the Placement Agents & Distributors & Etc.These are usually one time or can be over the period of time. Operating Expenses: This expense is apart from the Organisational Expenses that is Operating Expenses & Residual Expenses. The main operating fees is- Fees payable to trustee company, Custodian Fees, Fund accounting fees, legal fees, Audit Fees, Valuation & Etc In case of Management Fees, The Investment Agreement between the Investment Manager & Fund would specify the details of operating expenses of the fund & those to be borne by the Manager. 🎯Self-managed funds where managers are the employees of fund itself & draw salaries, hence the management fees is lower than regular funds. Any worth of sharing this or Stop?👇

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Adithya Pappala

Stealth • 1m

Access more VC Knowledge here:👇 https://substack.com/@9tdayvc To join the 9TDAYVC Community of Founders & Investors, Then DM!!

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