Asset Management Flashcards
what kind of fees do bankers receive for asset management
management fees and incentive fees
what are management fees
calculates as a % of asset under management (2%)
what are incentive fees
paid when portfolio performance surpasses hurdle rate (usually s%p 500)
What are transaction revenues
fees for private wealth management
what is private wealth management
wealth management for high net worth individuals or families, foundations
what is the risk and return for open and closed end fund
low risk low reward
what is the risk and return for real estate funds
medium low risk medium low reward
what is the risk and return for PE funds
Medium high risk medium high rewards
what are open and closed end funds
what is the risk and return for hedge funds and alternative investment
high risk high rewards
why is it called PE
acquires private companies (not on stock exchange)
equity (exclusively focused on equity investments)
steps of hedge fund acquisition
1) acquire all shares
2) exit with profit in 2/3 months
steps of PE acquisition
1) acquire all shares
2) de list it
3) change management
4) improve financial performance
5) exit or list
how long does a PE takeover usually take
5-10 years
what are two two types of limited partnerships
General and limited
