Apollo Global Management is reportedly planning to give 100 per cent of the transaction fees from its $12bn-targeting eighth fund to investors.
The firm had initially proposed to give 80 per cent when it began marketing Apollo Investment Fund VIII last year according to Bloomberg, which cited two people familiar with the situation.
That is up on the 68 per cent it offered for its $14.7bn buyout vehicle in 2008, but the firm has decided to up it to the maximum amount following recent criticisms of the cash it has been making from the fees.
Those fees come from the firms charging portfolio companies for services such as consulting and investment banking, and have previously been a pretty consistent 80-20 split in favour of investors.
But more firms are swinging towards the 100 per cent mark amid the competitive fundraising market following the global financial crash.
Last month it emerged Apollo was nearing the $5bn mark for its latest buyout fund, and was expected to hold a first closing by the end of May.
Apollo Investment Fund VII has posted a 35 per cent gross IRR to date, while its $10bn 2006 predecessor is running a gross IRR of nine per cent.
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