Read the small print.

Executive Summary

Fund terms are no longer one-size-fits-all. As private markets globalize and segment by asset class, management fees, waterfall structures, and cost allocations vary significantly. For investors and GPs alike, understanding these differences is no longer a luxury – it’s a necessity. Jasmine Blue Capital leverages data-driven fund structuring to create alignment, transparency, and investor confidence.

What’s Happening?

Based on Preqin’s latest term intelligence report (Q1 2025):

• Private debt offers the lowest average management fee at 1.40% inside the investment period, compared to:

  • Venture capital – 2.15%

  • Private equity – 1.81%

  • Real estate – 1.46%

  • Infrastructure – 1.50%

• Fee basis matters: 57.5% of private debt managers charge fees on invested capital, while 95.9% of private equity managers charge on committed capital.

• EMEA-focused private equity funds charge lower base fees (1.76%) than North America-focused funds (1.82%) – but offset this with higher organizational expense caps ($4.5mn vs. $3.8mn).

• Waterfall structures are becoming more complex. LPs demand:

  • Multiple interim clawbacks instead of single-event protections

  • Hybrid American–European models

  • Outsourced and technology-driven reporting to ensure transparency

Why It Matters for Investors

This evolving landscape creates both risk and opportunity:

• Misunderstood fee models can lead to millions in hidden costs

• Geographic variation means European funds may look cheaper, but shift costs elsewhere

• Lack of waterfall transparency erodes trust and may mask GP misalignment

At Jasmine Blue Capital, we:

• Use actively invested capital as our fee basis – aligning incentives with deployment

• Cap organizational expenses transparently in line with investor expectations

• Employ European-style waterfalls with multi-stage clawbacks to ensure fairness

• Outsource waterfall audits and reporting to leading fund admin tech platforms

Our Luxembourg and Singapore structures are built with institutional-level clarity from day one.

What’s Next?

Investors should expect:

• Fee pressure to increase, especially in Europe

• Wider adoption of hybrid waterfall models

• Legal teams requiring granular term comparisons before closing

• Digital-first GPs who integrate fee transparency into LP reporting

Jasmine Blue Capital is proactively aligned with these trends. We treat LPs as true partners – not price takers.

Join Jasmine Blue Capital

If you're seeking:

• Predictable economics with no hidden clauses

• Real alignment between deployment and compensation

• An investor-first approach to structuring

We’d be glad to show you how our fund terms are designed for clarity, fairness, and growth.

📩 Get in touch for a fund term comparison or a look at our LPA summary.