LP Fee Verification & Administration as a Service

LP Fee Verification & Administration as a Service

LP’s are increasingly hiring third-party expert firms to verify fees payable to Private Equity managers.

When I first read this news I was surprised to learn that many LP’s don’t have an operationalized process around validating management fee schedules and payment processing. Apparently I was naive in thinking that PE managers supplied LPs with a fee schedule each month or quarter with a breakdown of each fee element which the LP would subsequently verify against LP Agreements (“LPAs”). I was equally naive in believing that LPs would never write a check without having performed the requisite diligence to verify each and every payment. Hat tip to PEI Media where I first read the news. 

The Teachers Retirement System of Oklahoma (“TRS”) recently found at least four errors in its General Partner transactions. TRS of OK selected Meketa Investment Group of Boston to provide a verification and administration service. PEI reports that Meketa will bill TRS approximately $330K/year plus $4K for each new fund on-boarded.


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