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Core41 min3 ordered modules3 related modules

Fees and performance

Fee layers, valuation marks, total return, yield, benchmarks, and why share classes diverge.

Question routedWhat does this fee actually do to returns?
3Modules6Concepts6Tools2Controlled examples4Output packets

Ordered Modules

Move through the mechanics in advisor order.

01Fees / Start hereFees: What You Actually Pay in Semi-Liquid Alternative FundsA plain-English map of management fees, incentive fees, loads, trail fees, leverage costs, and total expense ratios.
Advisor jobCompare share classesName the fee layers that show up before reported returns.
Applied route
ConceptsFee dragManagement feeIncentive fee
ToolsFee Drag LabShare Class Cost Comparator
ExamplesMODEL-BDC-FEE: Non-traded BDC / fee stack
02Valuation / CoreValuation: How Alternative Fund NAVs Are Set - and Why It MattersWhy private marks, appraisal timing, manager judgment, and market stress can make NAV less precise than it appears.
Advisor jobExplain NAV marksExplain why private NAV is an estimate, not a market quote.
Applied route
ConceptsNet asset valueFair-value hierarchyLevel III
ToolsDistribution Quality LabNAV / Valuation Lag Explainer
ExamplesMODEL-PE-NAV: NAV / Level III context
03Performance / CoreBenchmarking and Performance: How to Read Alternative Fund ReturnsHow to interpret yields, total returns, IRR, MOIC, inception dates, benchmark choices, and fee drag.
Advisor jobRead performance tablesSeparate yield, total return, IRR, and benchmark context.
Applied route
ConceptsFee dragManagement feeShare class
ToolsFee Drag LabShare Class Cost Comparator
ExamplesMODEL-BDC-FEE: Non-traded BDC / fee stackMODEL-PE-NAV: NAV / Level III context

What you can explain after this

Compare performance after understanding what the return includes.

Which fee layers reduce investor-level return.
Why two share classes in the same fund can report different results.
How NAV timing can distort simple return comparisons.

Prerequisite Concepts

Terms the path assumes or teaches early.

FeeFee dragThe portion of gross performance consumed by recurring or one-time fund costs before the investor sees net return.FeeManagement feeThe recurring fee paid to the manager for running the strategy.FeeIncentive feeA performance-linked fee paid when a manager clears stated hurdles or return thresholds.FeeServicing feeA distribution or shareholder-servicing charge often tied to retail share classes.AccessShare classA class of fund shares with its own eligibility, fees, minimums, or channel rules.MetricNet asset valueThe fund's stated value after assets, liabilities, and share-class economics are applied.

Related Tools

Use the controlled lab before interpreting a model scenario.

LiveFee Drag LabTranslate a fee table into the amount of performance consumed by wrapper and distribution economics.LiveShare Class Cost ComparatorMake share-class selection visible before advisors compare net performance.LiveDistribution Quality LabHelp advisors explain why a high distribution is not automatically a high-quality return.LiveNAV / Valuation Lag ExplainerTeach why reported NAV should be read with valuation source and timing context.LiveWrapper MatrixUse before applying strategy or performance claims so the wrapper does not get confused with the underlying asset class.LiveFiling Trail DecoderRoute an advisor from a product question to the document type most likely to prove it.

Controlled Examples

Where the education should stay in model scenarios.

Private CreditMODEL-BDC-FEE
Non-traded BDC / fee stack

Model BDC wrapper and share-class economics

Use a controlled BDC scenario to connect wrapper structure, servicing fees, and share-class comparison before discussing performance.

  • Wrapper type before asset class.
  • Class-level servicing or distribution charges.
  • Illustrative fee table language before comparing returns.
Open Learn example
Private EquityMODEL-PE-NAV
NAV / Level III context

Model NAV mark context and valuation confidence

Use a model valuation packet to connect reported NAV, private marks, valuation hierarchy, and performance comparisons.

  • NAV date and valuation cadence.
  • Level III or model-based exposure where available.
  • Source document supporting the mark and the reporting period.
Open Learn example

Advisor Outputs

Leave with language and questions, not just reading.

Prospectus checksCheck the selected class before comparing performance

Confirm share class, management fee, incentive economics, servicing fees, loads, platform costs, and whether the return series is net of the same economics.

3 linked concepts / Product reviewInvestment committee notesSeparate structure, liquidity, fees, valuation, and source proof

Review wrapper rights, liquidity capacity, fee layers, valuation inputs, source-document freshness, and manager discretion as separate gates before discussing allocation fit.

1 linked concepts / Investment committeeClient-safe summaryExplain the wrapper before the return

This structure gives scheduled access to private-market exposure, but liquidity windows, fees, tax reporting, and source documents control the client experience.

1 linked concepts / Client meetingExplanation scriptExplain why NAV is a dated estimate

NAV is the fund's reported value at a point in time. In private markets, the date, valuation process, and Level III exposure matter as much as the number.

1 linked concepts / Client or IC context
Comparison note

Compare returns only after checking share class, fee stack, valuation timing, and whether the return is net of the same economics.

Client language

The manager's gross results are not the client's experience; wrapper costs and share-class charges can change the net outcome.