Get it Right the First Time: Drafting Investment Management Agreements

The management agreement (or investment management agreement) for a private equity fund provides the revenue stream for the investment and other professionals working to execute the fund’s investment program, and covers the costs of overhead for the fund’s investment manager. The management agreement is customarily a stand-alone document, but its terms may sometimes be incorporated into a fund’s limited partnership agreement or other organizational document. The management agreement is a binding legal agreement, generally between the fund’s general partner on behalf of the fund and the fund’s investment manager. This form management agreement provides an example of how to document the management fee and other elements of the fund and manager relationship.

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Related Content

• Management Agreement Drafting for a Private Equity Fund
  Read this practice note that adds valuable context and provides drafting tips for practitioners working on private equity fund management agreements.
• Management Fee Waiver (Private Equity Fund)
  Review this clause that allows investment managers to waive receipt of management fees in exchange for special allocations from a fund, which receive more favorable tax treatment.
• Private Equity Fund Formation Checklist
  Consult this checklist that provides an overview of formation and structuring matters to be considered prior to drafting a fund’s organizational and governing documents.

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