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Incentive fee

A performance-linked fee paid when a manager clears stated hurdles or return thresholds.

Why it matters

The economics can change materially when returns cross the threshold.

What this means on AltHarbor

AltHarbor separates incentive economics from servicing and distribution fees.

Product-page application

Use this when reviewing incentive fee, hurdle rate, catch-up terms as mechanic fields. Product surfaces apply the same vocabulary to real fund facts.

Source checklist
  • Read the hurdle, catch-up, and measurement period.
  • Check whether incentive fees apply to income, gains, or total return.
  • Look for waivers, deferrals, or fee-support mechanics.
Tooltip / inline use

Read the hurdle, catch-up, and measurement period.

Apply this concept

Definition to source check to tool and learning path.

ToolFee Drag Lab

Translate a fee table into the amount of performance consumed by wrapper and distribution economics.

LiveLearning pathFees and performance

Compare performance after understanding what the return includes.

Core / 41 min

Reference graph packet

One concept entry now routes to the full Learn system.

2Modules
1Tools
2Wrappers
0Examples
0Outputs
ToolFee Drag Lab

Translate a fee table into the amount of performance consumed by wrapper and distribution economics.

LiveWrapperNon-traded BDC

Commonly quarterly repurchase policy, often up to 5% of shares or NAV.

BDCWrapperUnregistered perpetual credit

Agreement-defined windows, lockups, queues, gates, or manager discretion.

Perp CreditModuleFees: What You Actually Pay in Semi-Liquid Alternative Funds

A plain-English map of management fees, incentive fees, loads, trail fees, leverage costs, and total expense ratios.

FeesModuleDue Diligence: How to Evaluate a Semi-Liquid Alternative Fund

A five-layer framework for evaluating structure, manager quality, portfolio risk, operations, and disclosures.

Due DiligenceConceptProration

Partial fulfillment when investor requests exceed the fund's repurchase capacity.

Shared module: Due DiligenceConceptFee drag

The portion of gross performance consumed by recurring or one-time fund costs before the investor sees net return.

Shared module: Fees

Related modules

FeesFees: What You Actually Pay in Semi-Liquid Alternative FundsDue DiligenceDue Diligence: How to Evaluate a Semi-Liquid Alternative Fund

Related tools

LiveFee Drag Lab

Related wrappers

BDCNon-traded BDCPerp CreditUnregistered perpetual credit

Advisor outputs

Leave with language and diligence prompts.

Client-safe summary

Incentive fee is part of the cost structure that can reduce the return a client actually receives.

What to check

Read the fee table by share class and confirm whether performance figures are gross, net, or class-specific.

IC note

Compare the fee against the service or incentive it pays for, then test the compounding effect with the Fee Drag Lab.

Concept graph

Neighboring terms to inspect next.

LiquidityProrationShared module: Due Diligence / Same wrapper row: BDCFeeFee dragShared module: Fees / Shared tool: Fee Drag LabFeeManagement feeShared module: Fees / Shared tool: Fee Drag LabFeeServicing feeShared module: Fees / Shared tool: Fee Drag LabAccessShare classShared module: Fees / Shared tool: Fee Drag LabWrapperNon-traded BDCShared module: Fees / Same wrapper row: BDC