A fee reduction occurs when an investor is charged a management fee lower than the one specified in the vehicle terms (e.g. in the PPM or LPA). However, if the investor is charged the same management fee as the one specified in the fund terms, but once that fee is received by the management company, the investor receives a portion of its fee back as a rebate, this is considered a Fee Rebate.
Global Definitions Database
Fee reductions/rebates
Source: Global | Date: 20 March 2020 | ID: D0610 | Version: 2