What management fees do VC funds charge?

The management fee is the annual charge LPs pay to run the firm — conventionally 2% of committed capital during the fund's investment period, often stepping down thereafter. Together with 20% carry it forms the '2 and 20' structure.

Fees fund salaries and operations regardless of performance; over a decade they consume a meaningful share of commitments, which is why 'net of fees' returns are the ones that matter to LPs.