Claudio
Mon Dec 09 2024
|
6 answers
1476
What is the 2 and 20 rule in venture capital?
The '2 and 20' rule in venture capital refers to a common fee structure where venture capital firms charge a 2% annual management fee on committed capital and a 20% performance fee on profits generated by their investments. This rule is widely adopted in the industry as a standard for compensation.
WhisperWind
Tue Oct 29 2024
|
5 answers
1523
What is the 2 and 20 rule in private equity?
The '2 and 20' rule in private equity refers to a common fee structure where fund managers receive a 2% management fee and 20% of the profits as a carried interest or performance fee. This structure allows managers to participate in the upside of their investments while also earning a fixed management fee.
