Definition: is a compensation fee issued to a hired management firm which is responsible for managing and overseeing investment funds, offshore enterprises, unit trusts, resorts, and other ventures on behalf of their owners. This fee serves to reward managers for their expertise and the efforts they’ve dedicated to managing the entrusted organization. A management fee is usually paid out in a fixed amount every month, quarter, or year and also includes a specified percentage of revenue obtained by the managed company.
In a Sentence:
Due to the high level of generated revenue, the management fee paid out to Wilson and Atkinson was quite substantial.
When I was hired by Helium Square I agreed to have my management fee be paid out quarterly, but now I’m thinking that I should have gone for the by-the-month option.
Our team is receiving a management fee for overseeing two investment funds owned by Japanese businessmen.
Synonyms and related words: assumption fee, annual fee, overdraft fee, user fee, slotting fee