The Anatomy of an SPV Fee Structure

SPV fee structures in Private Equity can be complex. This guide breaks down the key components and how they interact.

Entry Fee

The entry fee is a percentage charged to investors at the time of commitment. Typically 1-5%, it covers the deal sponsor's origination costs. For a $100,000 commitment at 3% entry fee, the investor pays $3,000 in fees on top of their investment amount.

Carry (Carried Interest)

Carry is the performance fee — typically 15-20% of gains above the initial investment. If an investor's $100,000 investment grows to $300,000, the $200,000 gain is subject to carry. At 20%, the carry fee would be $40,000.

SPV Costs

SPV costs include legal setup, administration, audit fees, and regulatory filing costs. These are typically allocated pro-rata across investors based on their commitment size. A $500,000 SPV cost across $10M in total commitments means each investor pays 0.05% of their commitment.

All-in PPS (Price Per Share)

The all-in PPS combines the base PPS with all fees to show investors their true cost per share. This is the most important number for investor transparency.

For example: Base PPS: $10.00, Entry fee component: $0.30 (3%), SPV cost component: $0.05, All-in PPS: $10.35

Why This Matters

ILPA (Institutional Limited Partners Association) emphasizes fee transparency. Investors increasingly expect a clear breakdown of what they are paying and why. Stak computes all of these calculations automatically from deal parameters — no spreadsheet formulas required.