Private Equity Fees Drop to New Low in 2025
Originally Published 5 days ago — by CNBC
In 2025, private equity firms charged the lowest average management fees ever recorded, around 1.61%, due to a challenging fundraising environment, industry consolidation, and increasing fund sizes, with larger funds spreading fixed costs over a broader base. Despite lower fees, total capital raised remained stable, and the trend of fee compression is expected to continue, influenced by fund size growth and market conditions.