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Is it legal for private equity funds not to receive performance compensation?
Legal. According to the query of China Fortune, the introduction of non-performance compensation measures is related to the positioning of the company and the strategic characteristics of the products. The introduction of preferential rate measures reflects the customer-centered service concept of private equity fund managers, and is also a further upgrade of investor services in private equity fund industry. In the future, private equity managers can appropriately benefit investors and optimize the holding experience without affecting investment and research. Therefore, it is legal for private equity funds not to receive performance compensation.