Investors who contributed a third of the $3bn in new capital that Goldman Sachs is injecting into its troubled GEO hedge fund were lured with a substantial discount in fees. Goldman on Tuesday night said it had agreed to waive its annual management fee for the new investors, who will pay a performance fee of just 10 per cent on any profits after the fund has achieved a 10 per cent return, as opposed to the standard fees of 2 per cent of assets and 20 per cent of any profits earned. Other fund managers hit by the turmoil have also agreed to lower their fees in efforts to attract capital, observers said.

This entry was posted by Gwen Robinson on Wednesday, August 15th, 2007 at 5:51 and is filed under Capital markets, Hedge funds. Tagged with goldman sachs. Edit this entry.