NISM 19D Alternative Investment Fund Managers Certification Exam Notes
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Management Fees: Charged annually, typically 1-2% of committed capital or NAV.
Performance Fees: Linked to fund profits, often 20% of returns above a hurdle rate.
Hurdle Rate: Minimum return threshold before performance fees are charged.
High-Water Mark: Ensures performance fees are paid only on new profits.
Carried Interest: Share of profits allocated to fund managers, typically 20%.
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