APERS explains HarborVest fee structure; offers $26.5M incremental commitment with no fees on new tranche
APERS representatives told the ALC the HarborVest product would average about 20 basis points in management fees and carry a reduced carried interest (5.5% instead of 20%), and that HarborVest proposed a $26,500,000 additional commitment with no fees on that incremental amount.
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Amy Fletcher, executive director of the Arkansas Public Employees Retirement System (APERS), and Carlos Bormail, APERS chief investment officer, appeared to discuss H5 (APRS APRs and investment summaries). Bormail explained the proposed HarborVest structure and historical norms for private-market fees, saying management fees and carried interest have declined from earlier decades when 2% management fees and 20% carried interest were more common. "It would be annually, and we were presented an opportunity. They asked if we would be willing to increase our commitment by $26,500,000 and there would be no fees on it," Bormail told the council.
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