Guidelines on Performance Rewards of Private Equity Investment Funds (Draft for Comment).

in the design and implementation of performance compensation mechanism, private fund managers should follow the principles of consistency of interests, realization principle of income, fair treatment and transparency of information. At the same time, around the above four principles, the Guidelines regulate the related businesses of performance compensation one by one.

the performance reward of a fund is a performance reward drawn by the fund manager according to the performance of the fund and the calculation method stipulated in the fund contract.

the income of private managers mainly comes from the management fee income charged according to 1%-2% of the fund size, and the performance reward extracted after creating income for investors. By the end of April 22, the scale of domestic private equity funds was 14.34 trillion yuan, and the number of private equity managers was as high as 24,599, with an average management scale of less than 7 million per private equity manager. If the net management fee of the fund manager after paying the seller's share is 1%, the management scale of 7 million yuan will earn 7 million yuan a year before tax, which can only barely maintain the daily operating expenses of a small private placement. However, among more than 2, private fund managers, only about 12% can really reach the management scale of 7 million. Therefore, for most private managers, performance compensation is the "staple food".