GP管理费“变天”？！广东发文：政府投资基金要按实缴实投、以基金收益支付！

Core Viewpoint - The recent reform in management fees for public funds has led to significant adjustments in private equity investment fund management fees, particularly highlighted by the new regulations from Guangdong Province, which emphasize a market-driven approach to fee determination based on actual contributions and fund performance [1][2]. Summary by Sections Regulatory Changes - The Guangdong Provincial Finance Department released the "Management Measures for Government Investment Funds," which stipulates that management fees should be based on actual contributions and fund performance, and no fees can be charged after the fund's term ends [1][2]. - The new regulations align with earlier guidelines issued in January, which also emphasized that management fees should be based on actual contributions or investment amounts [1]. Industry Reactions - The industry anticipates that the restructuring of management fees will accelerate the reshuffling of the venture capital industry, with calls for market-driven standards for fee collection [1][6]. - There is a debate regarding whether the new rules apply only to government investment funds or extend to the underlying sub-funds, with expectations that many state-owned limited partners (LPs) may adopt a "transparent management" approach to mitigate audit risks [2][3]. Trends in Management Fees - Three key trends in management fees have emerged: 1. A decrease in management fee percentages, with many funds now charging between 1% and 1.5%, making the traditional 2% fee increasingly rare [3][5]. 2. A shift towards installment payments of management fees rather than one-time payments, with many LPs paying fees only after the fund's establishment [3][4]. 3. A linkage of management fees to fund performance, with some VC firms adjusting their fee structures to align with performance milestones, thereby enhancing trust with LPs [5][9]. Market Dynamics - The influx of state-owned LPs and stringent regulatory requirements are reshaping the management fee landscape, compelling GPs to reassess their fee structures amidst challenging exit conditions [7][9]. - The average DPI (Distributions to Paid-In) for government-guided funds is reported at only 0.7, indicating a pressing need for GPs to improve performance to meet LP expectations [7]. Call for Market-Driven Standards - There is a strong industry consensus advocating for management fee standards to be determined by market forces rather than government regulations, emphasizing the need to respect the interests of social investors and ensure fair returns for fund managers [8][9].