FAR® Funds are unique in providing incentive compensation in the form of fair market value options called Fund Alignment Rights® or FAR®s. Private equity incentive compensation practices hurt investors. Managers bank their share of profits after each deal or, at a minimum, when the fund closes. Even European model funds, that divide cumulative terminal profits, make interim tax distributions to managers after each deal profit. As a result, investors can, and often do, receive less than the stated share, such as 80%, of cumulative pre-tax, profits of a fund, or across funds.

FAR® Funds provide investment managers with a share of cumulative profits over the life of the investment with the manager. As a result, investors are guaranteed to realize higher returns, or Alignment Alpha®. In up years the investor realizes additional profits from the capital the manager did not withdraw. In down years the manager’s tentative share of the profits bears its share of the loss.

In addition, our private equity FAR® Fund revolutionizes private equity investing – investors can go in and out of a perpetual fund and be assured of receiving their share of cumulative pre-tax profits.

Model Your Own Results. If you are an investor in private equity, or a manager, Contact Us to receive a comparison of results under a traditional fund and a FAR® Fund.