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Fundraising gets weirdly hard when a smart investor is quietly thinking, “Wait, how does this actually work?” That hesitation isn’t always a judgment on your strategy or your track record. A lot of the time, it’s a fund economics problem: accredited investors who came from public markets or other asset classes may never have had management fees, carried interest, and the waterfall structure explained in a way that feels simple and confident.

We walk through the three concepts that most often slow conversations down. First, management fees: what they are (often around 2% of committed capital), what they pay for, and why treating fee questions as real due diligence helps you move past objections faster. Then we get into carried interest, typically around 20%, and why it only lands well when investors understand the distribution waterfall.

Finally, we connect it all to the alignment story. When the waterfall returns capital, delivers a preferred return, and only then activates carry, the manager’s upside is designed to follow investor wins. That framing can shift your terms from “things to negotiate around” into evidence that everyone is pulling in the same direction.

If you want to pressure test how your fund economics are being presented and whether they’re landing the way you intend, book a demo at fastport.co (link in the show notes). Subscribe, share this with a fellow GP or LP, and leave a review so more people can find Private Markets Uncapped.