Last Money In reposted this
How often were Management Fees charged on SPVs (a look at 833 SPVs)? Last Money In partnered with Sydecar to share SPV management fee data from Oct 2023 to Sept 2024. We used this dataset to highlight a number of findings and trends we are seeing as it relates to management fees charged on SPVs. Across the 833 Sydecar SPVs: •40% of these vehicles did charge a management fee. •60% of SPVs run on the Sydecar platform did not take a management fee. •The average management fee taken was 2.86%. •The median was 2%. •The range was .2% to 20%. Of the 40% of SPVs that did take management fees: •21% took a 2% management fee, making this the most common management fee used •21% of co-investment SPVs (SPVs that were created alongside a Sydecar Fund+ committed capital fund) charged a management fee. Of the management fees taken on a co-investment SPV: •Average management fee = 1.19% •Median = 1% •The range was .75% to 2% % of deals charging management fees by funding round: •Pre-Seed = 25.21% •Seed = 36.43% •Series A = 37.10% •Series B = 49.30% •Series C = 40.91% •Series D = 61.90% •Series E = 75% •Bridge Rounds = 41.18% -- Powered by Sydecar, Last Money In is the most actionable Venture Capital newsletter with 50k+ subscribers. Written by Zachary Ginsburg and Alex Pattis, the global syndicate leaders with 800+ VC SPVs closed.
"To focus is to eliminate distraction." — Donald Miller. It’s intriguing how 60% of Sydecar SPVs choose not to charge management fees, hinting at a strategic choice that aligns with investor interests. This could drive founder trust and optimize capital efficiency—an approach that might redefine standard practices in future venture funding strategies.
Most common reply when I send out an SPV deal where the syndicate lead slipped in a 1%: "I don't pay fees on SPV deals." Even hot deals!
Interesting. I wonder why the % of deals that charged a management fee steadily increased across all SPVs as the stages got more advanced with the exception of Series C. Also curious to know why there’s a significant bump from D to E.
Why are the fees more common for the later stage deals? Either because there is more capital or more work?
Thank you for sharing this insightful analysis on SPV management fees. It's fascinating to see the trends and variations across different funding rounds. The detailed breakdown provides valuable context for understanding the landscape. Your work is incredibly helpful for those navigating the complexities of SPV management. Looking forward to more updates!
This is great data
Thanks for sharing
Great data Alex Pattis 🙏
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4moAre the %s annual or total across the life of the investment?