Written by BlackRock fee diligence experts, Fee Diligence: From Transparency to Accountability examines why transparency alone is no longer enough and how leading LPs are approaching fee governance, validation and accountability in private markets.
The report explains how private equity fees and other fund economics can be affected by the interaction of legal terms, operational processes, financial reporting and fund lifecycle events. While standardized templates have improved fee and expense reporting, receiving information does not establish that the underlying fee calculations are accurate or aligned with the governing agreement. For LPs, effective oversight therefore requires connecting the fee structure documented in the limited partnership agreement with calculation models, reported outcomes and investor-level economics.
Drawing on eFront FAIR findings and illustrative case studies, this report identifies where fee-related issues can arise and sets out a practical governance toolkit for LPs.
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