Private Market Fees Simplified

If you are considering investing in the private markets, your options to access alternatives are either SPV’s and rolling funds or actively managed funds. 

SPVs and rolling funds make money even if the underlying investments aren’t successful, so they often focus on access to deals, and not on ensuring the underlying investments have a positive outcome once capital is deployed.

Our focus at Gridline is on top-quartile, actively managed funds with highly involved fund managers and general partners. Traditionally this kind of financial product can become expensive, with layers of fees offsetting their gains. Gridline’s fee structure allows investors to keep more of the returns in their own pockets.

A traditional fund of funds typically layers at least a 1% management fee and 10% carry on top of the underlying fund’s 2% and 20% fee.

Banks and wirehouses often add yet another wealth management or advisory fee on top, resulting in a 20% to 30% total cost over the life of the investment. There’s too many fingers in the cookie jar for the investor to win in the end.  

At Gridline, we charge a simple, AUM-only fee with a tiered structure, much like you’d see from a mid-size RIA. We charge 50 to 100 basis points decreasing based on their total AUM with Gridline. Our fund investments have zero carried interest which ultimately helps us generate better net returns for our users.