Investment Management Agreement | Practical Law

Investment Management Agreement | Practical Law

An investment management agreement to be used in connection with a private equity fund's appointment of an investment manager. This agreement sets out the terms and conditions by which a fund vehicle agrees to pay advisory and management services fees and out-of-pocket expenses to an investment manager entity. It includes common provisions, such as management fees, monitoring fees, scope of activities, and indemnification of the manager. This Standard Document has integrated notes with important explanations and drafting and negotiating tips.

Investment Management Agreement

Practical Law Standard Document w-016-9327 (Approx. 14 pages)

Investment Management Agreement

by Practical Law Corporate & Securities
Maintained • USA (National/Federal)
An investment management agreement to be used in connection with a private equity fund's appointment of an investment manager. This agreement sets out the terms and conditions by which a fund vehicle agrees to pay advisory and management services fees and out-of-pocket expenses to an investment manager entity. It includes common provisions, such as management fees, monitoring fees, scope of activities, and indemnification of the manager. This Standard Document has integrated notes with important explanations and drafting and negotiating tips.
On August 23, 2023, the SEC adopted new rules under the Investment Advisers Act of 1940 for private fund advisers (see Legal Update, SEC Adopts New Rules for Private Fund Advisers) (the "New Rules"). The New Rules are generally effective 12 to 18 months after publication in the Federal Register and will have a material impact on limited partnership agreements for private equity funds and may require revisions to this resource. Updates are planned in the near future. For more information on the final rule, see Private Fund Advisers; Documentation of Registered Investment Adviser Compliance Reviews, Fed. Reg. 88 FR 63206 (Sept. 14, 2023).