Dissecting the Fund Manager Compensation Stack
from Syndication Attorney Field Notes with Tilden Moschetti Hosted by Tilden Moschetti
Structuring fund manager compensation in a Regulation D syndication goes beyond adopting a standard "2 and 20" template. In this field note, syndication attorney Tilden Moschetti breaks down the fund manager compensation stack into three distinct layers: management fees, carried interest, and expense reimbursements. Discover why blending these distinct financial functions into a single "sponsor fee" can create disclosure confusion and strain investor trust. Learn how to accurately define operational runway, performance upside, and fronted costs in your Private Placement Memorandum and Operating Agreement, ensuring clarity and alignment with your investors from day one. Also see: Fund Manager Compensation: Management Fees, Promotes, and Incentive Allocations — https://www.moschettilaw.com/fund-manager-compensation/ Note: This episode's audio is generated using AI voice cloning technology based on Tilden Moschetti's written work. Watch the video on YouTube: https://youtu.be/KtbkeXW5ZoA
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What this episode covers
Structuring fund manager compensation in a Regulation D syndication goes beyond a standard template. In this episode, we break down the three layers of compensation—management fees, carried interest, and expense reimbursements—and explain why blending them can create disclosure issues.
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