Compensation paid to a fund manager who achieves above-average returns over a given period of time. The fee is usually compared to a benchmark. Sometimes called performance fee....
The illiquidity premium is generally understood to be the additional return received for the additional risk of tying up capital in a less liquid asset. Illiquidity becomes a particular concern when markets start to fall; investors may be forced to endure large price drops if...
Represents the total amount of equity invested in the property, calculated as all-in cost minus debt funding, inclusive of any additional capital used to fund transaction costs, expenses, escrows or reserves....
