Difference Between Management Fees And Performance Fees

Management Fees And Performance Fees

Management Fees is paid to the manager or management company against the services received by the company while in case of Performance Fees, the client company’s business assets are managed by investment manager who is responsible for generating profits on investment.

Management fees is paid to management company for managing business operations whether the manager meets the targets or not while performance is paid by clients’company to investing managers only for generating positive returns on the investment of client’s business assets.