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Fees App

The fees app handles computing fee accruals owed by investors to the fund. This is one of the most complex parts of the Maybern system.

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What are Fees?

Fees are amounts owed by investors to the fund, typically management fees. The fees app computes fee accruals - the amounts owed - but not the actual payment (which happens via capital calls).

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Fee Calculation Basics

Fees are typically computed quarterly using: 
Fee = Fee Basis × Fee Rate × Time Period
Example: 100commitment×1100 commitment × 1% rate × 0.25 (quarter) = 0.25

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Variation

Fee basis and rate can vary by:
  • Fund family
  • Fund
  • Investor class
  • Individual commitment
  • Time period (e.g., committed capital for first half, invested capital for second half)

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Fee Components

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Fee Basis

The amount used to calculate fees:
Common BasesDescription
Committed CapitalTotal amount committed by investor
Contributed CapitalAmount actually called
Invested CapitalAmount invested in deals
Net Asset ValueCurrent value of investment

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Fee Rate

The percentage rate applied to the basis:
ConfigurationExample
Fund family default2%
Investor class override1.75%
Commitment-specific1.5%

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Fee Calculation

Gross Fee = Fee Basis × Fund Family Default Rate
Fee Break = Fee Basis × (Default Rate - Commitment Rate)
Net Fee = Gross Fee - Fee Break

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Fee Offsets

Fees can be reduced by offsets when the fund exceeds LPA-defined spending limits: Example: LPA limits Org Costs to 1M,fundspends1M, fund spends 1.1M → $100K fee offset

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Fee True Ups

When prior quarter fee calculations need adjustment:
  • After closings (new investors, equalization effects)
  • After cancel-corrects
  • When fee basis changes retroactively

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Configuration Models

ModelDescription
FeeSingle fee for a fund family
FeeCalculationOverride level and time period
FeePartTies a fee rate to a fee basis
FeeBasisComposed of fee basis categories
FeeBasisCategoryLinked to TransactionCalculation

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Transaction Codes

CodeDescription
Management Fee AccruedGross fee at fund family default rate
Management Fee Break AccruedReduction for commitment-specific rate

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Calculation Example

Fund family default: 2%, Commitment rate: 1.5%, Basis: $1000 
Gross Fee = $1000 × 2% × 0.25 = $5.00
Fee Break = $1000 × 0.5% × 0.25 = -$1.25
Net Fee = $5.00 - $1.25 = $3.75
This two-transaction approach enables:
  • Clear audit trail of rate adjustments
  • Easy calculation of “gross fees after fee breaks”
  • Consistent reporting across investors

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Calling for Fees

Fees are typically collected via capital calls. See Capital Calls - Calling for Fees.

Capital Calls

How fees are collected via capital calls.

Closings

Fee true-ups during closings.

Calculations (MXL)

Dynamic fee calculations with MXL.

Transactions

Fee transaction tracking.