- Good practice in the industry “not the norm”
- What are the “virtuous” principles to look for?
Private equity trusts often have poorly structured performance fees, which can make them ineffective and unfair to shareholders, according to Quilter Cheviot.
The wealth manager criticised how private equity investment trusts set performance fees in a report on governance at alternative investment trusts. It listed a series of principles that fee structures should follow to strike a balance between incentivising the manager and setting a “reasonable” fee for shareholders.