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What role do private market fund managers play?

Curious about private markets

What role do private market fund managers play?

Private market fund managers play a critical role in identifying and sourcing investment opportunities, conducting due diligence, structuring deals, and managing the investment portfolio over the investment period. They typically have a deep understanding of the industry or sector they specialize in and have a network of industry contacts that can help them source investment opportunities.

Private market fund managers also play an important role in managing the risks associated with private market investments. They will often have a team of investment professionals with specialized skills in areas such as finance, law, and operations to help them evaluate and manage the risks associated with different investment opportunities. They will also typically have a robust risk management framework in place to help them monitor and manage risk throughout the investment period.

Private market fund managers are compensated through a combination of management fees and carried interest. Management fees are typically a percentage of the committed capital and cover the costs associated with managing the fund. Carried interest is a share of the profits generated by the fund and is typically paid to the fund managers once certain performance benchmarks are achieved.

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