News & Events

Corporate Partner Rajib Chanda was quoted in a BoardIQ article titled “Could Performance Fees Entice Better Than Fulcrum Fees?” The article discusses the potential benefits of using traditional performance fees over fulcrum fee models for providing a flexible fee structure to compete with investor interest in passive products. The idea of encouraging lawmakers to allow funds to use traditional performance fees was put forth in a recent Simpson Thacher Client Alert. Rajib says “[o]ur view is that the concerns around performance fees that led to the adoption of the fulcrum fee structure are really not any better addressed by the fulcrum fee than by a standard performance fee that has a hurdle, and it would be better if we wanted to have active advisers in a position to compete with passive managers.”

To read the Firm’s referenced January 2019 Registered Fund Alert, please click here.

To read BoardIQ’s full article, please click here (subscription required).