Below please find a definition of “Capital Hurdle Rate Calculation” Capital Hurdle Rate Calculation: The minimum return necessary for a fund manager to start collecting incentive fees. The hurdle is usually tied to a benchmark rate such as Libor or
The hurdle rate is an important concept to understand in hedge fund compensation and fees. In the following video, I explain what a hurdle rate is and how it is used by hedge funds and investors. Video Transcript/Summary: The strategies and