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Cost recharging in Alternative funds

As cost pressures mount across the alternatives industry, fund managers are increasingly shifting operational expenses from the corporate profit and loss statement (P&L) to their funds. This three-part article series examines the key considerations in designing cost recharging models that are fair, transparent, and defensible, while balancing investor expectations, prevailing market practices, and regulatory requirements.

Explore our series

Cost recharging in funds: Setting the scene in a shifting landscape

As the alternative investment management industry navigates in an economically challenging environment, a key topic has come into focus at the intersection of operations, governance, and investor expectations: the allocation of internal costs and external expenses between fund managers, the funds they manage, and ultimately, investors.
Perspective
4 minute read

Building a robust governance framework supporting fund expenses and cost recharge models

As cost-recharging practices have become more advanced in the alternative investment sector in recent years, regulatory scrutiny of these arrangements has increased significantly.
Perspective
2 minute read

From principles to practice: Operationalizing cost recharge models

Once governance is in place and regulatory expectations are met, managers face a practical question: how to implement cost recharging in a way that is consistent, transparent, and justifiable.
Perspective
2 minute read

Get in touch

Arnaud Bon

Partner | Consulting Alternatives Leader

Philippe Theissen

Director | Investment Management