Traditional Search Funds & Board Fees

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February 03, 2025

by a searcher from The University of Chicago - Booth School of Business in Chicago, IL, USA

Does anyone know it is normal for traditional search funds to pay annual/quarterly board fees to their search investors? If so would that count toward IRR calculations as it is money out to investors?

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Reply by a searcher
from Northwestern University in Dallas, TX, USA
very normal for investor to charge board fees if they have a board seat and let me tell you, they are getting VERY expensive. Does not count towards IRR calc. Talking to searchers, board comp has doubled or tripled in the last 10 years in search world.
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Reply by a searcher
from Yale University in Calgary, AB, Canada
Wow. That is good to know. Definitely used to independents getting a board retainer, but board members who are representing active investor interests and taking a retainer in the process is a new to me. Thanks for the info!
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