Maybern Insights

A rapidly growing investment firm managing approximately 15 closed-ended funds and multiple co-investment vehicles faced a critical inflection point. Their operational infrastructure was struggling to keep pace with growth, and the small finance team was overwhelmed by increasingly complex fund operations.

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.

Teresa Rohrs (Managing Director, Solutions Architect at Maybern) has over 13 years of real estate and private equity expertise. Previously, she led Cadre's Fund Management & Operations team and worked at Angelo Gordon in their Real Estate group.

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.