Founders share class

Founders classes typically halve the standard fees, for example 1% and 10% instead of 2% and 20%, and close once the fund passes a capacity threshold such as US$25 million or a date such as the first anniversary. Investors in the class keep the discount on their original capital, and sometimes on additional subscriptions, for the life of their investment.

Allocators who specialise in emerging managers expect a founders class and will often ask for capacity rights alongside it.

Managers on POD can create a founders class as one of the share classes of their segregated portfolio, with its own NAV series tracked by the administrator.