Hedge fund management fee based on?

CFA Level III
#1

Hi everyone,

Can someone please confirm what the AUM fee is based on? Is it based on committed capital? or is it based on NAV? Readings contradicted. Thanks.

#2

Committed capital applies only to private equity funds and the management fee is based on committed funds. As for hedge funds the management fee is based on market value of fund’s shares, NAV.

#3

Thank you!