Industry Resources

In the world of private debt and private equity, every basis point counts. Fund managers are constantly seeking ways to optimize returns for their limited partners (LPs). One often overlooked component that can significantly impact investor internal rate of return (IRR) is the timing of management fee break rebate distributions. In this post, we'll explore how more frequent fee break distributions can maximize returns for those investors with fee breaks, and how Maybern's integrated platform makes this process operationally feasible.

One of the most significant risks General Partners (GPs) face is the potential for clawback — the obligation to return previously distributed carried interest due to subsequent underperformance. Advanced waterfall tools and comprehensive data management systems (like Maybern) can help mitigate this risk.

In recent years, the private equity industry has faced increasing operational complexity, driven by factors such as growing fund sizes, more diverse investment strategies, and heightened regulatory scrutiny. Simultaneously, the Institutional Limited Partners Association (ILPA) has raised the bar for transparency, governance, and alignment of interests. This piece breaks out the pain points around transparency & reporting to ILPA standards, and how to address key operational challenges.