Performance Fee
January 22, 2014 | | Kris Tabetando | 0 Comment
In investing, a performance fee is a fee paid to an investment manager (in addition to the management fee) to compensate the manager for a positive investment performance.
This fee is usually charged as a percentage of the returns generated by the investment. It is very common in the hedge fund industry in which performance fees can be anywhere from 20% to 30% of profits generated.