Private Equity International (PEI) has used Bain Capital's new fund raising to provide an interesting take on why the decades old Private Equity fund fee structure of "2 and 20" (2% of the fund size as annual fees and 20% "carry" or profit share) has barely come down despite the financial crisis and why LPs ultimately don't care enough about them. Extract from the article titled "Bain and the great fee debate" : For years, Bain has been one of the few outliers to the prevailing 2-and-20 model, charging 2-and-30 instead - and with some success, given that it raised five funds this way. This time round, however, it decided to offer LPs three options: a 1.5 percent management fee with 20 percent carry and a 7 percent preferred return, a 1 percent management fee with 30 percent carry and a 7 percent preferred return, or a 0.5 percent management fee with 30 percent carry and no preferred return. Since LPs have long complained that management fees a...