Callan has released its 2024 Private Equity Fees and Terms Study, which analyzed 413 private equity partnerships, representing fund offerings in the market from 2018 to 2024, including funds currently fundraising.
The study found unlike trends observed in other asset classes (namely the public markets), private equity fees have not come down over time. Most private equity managers are not inclined to change their fees from one fund to the next, leading to relative stability in fees, at least over shorter timeframes. Fees today are not that much different than fees seven years ago. Any variability from year to year is dependent on the strategy composition of the dataset. Fees can vary widely by strategy type, with two key observable trends: (1) higher risk/return strategies (namely venture capital) typically charge higher fees; and (2) smaller funds also tend to charge higher fees. As a result, the more venture capital and small buyout funds in the dataset, the higher