Welcome to Attention Grabbing circa 2025. This isn't it. Management fees are an interest free loan extended by LPs to GPs to pay for the business. The best GPs not only repay these fees through recycling, but get to 110-120% of committed capital invested. /1
A dirty secret about venture capital most people don't understand:
The actual management fees charged by VC funds is 20%, not 2%
You have to pay the fee for all 10 years, even if the fund only invests for 1-2 years
On a $1B fund, the fund manager makes $200M no matter what