BlackRock, the world’s largest asset management company, has debuted its first private equity fund in China, attracting great attention with a management fee rate nearly 50% less when compared to domestic funds, The Paper reported.
The China A-Share Opportunity Private Equity Fund launched by BlackRock charges only 0.75% per year for management fees. While that of domestic funds is usually 1.5% to 2%.
Also, BlackRock’s investors can withdraw only 10% of the remuneration generated from the performance, while current domestic private equity fund investors can enjoy up to 20%
However, a fund manager said there are certain calculation differences to be observed.
For example, BlackRock’s earnings calculation method is carried out on a daily basis and settled on a quarterly basis. Domestic products are more likely to settle earnings based over longer periods.
At present, the first phase of BlackRock’s fund is currently only selling to qualified private investors, according to an insider.