Accretion Investment Management

Activities

Fees

The standard private equity fee structure is regressive for underperforming portfolios. The more a portfolio underperforms, the greater the misalignment between investors and their manager. This is because management fees are based on original investment values that have since declined and, in addition, the manager has no prospect of earning performance fees.

Accretion has a fee structure for replacement manager roles that results in:

  • Significant reductions in management fees. Accretion operates a lean business model and does not base its management fees on original investment values. Accretion also backs itself to earn performance fees.
  • A non-standard performance fee basis that is strongly aligned with investor outcomes.