--- title: "Continuation fund rollovers: compare fee dollars before fee rates | Altss Blog" description: "An illustrative continuation-fund rollover shows how a lower management-fee rate can cost more, and how to calculate the break-even fee base." canonical: "https://altss.com/blog/continuation-fund-rollover-management-fee-base" --- [Altss Research](https://www.linkedin.com/company/altss) 3 min read Updated Nov 14, 2026 Share # Continuation fund rollovers: compare fee dollars before fee rates An illustrative continuation-fund rollover shows how a lower management-fee rate can cost more, and how to calculate the break-even fee base. [Back to blog](https://altss.com/blog) Share [LinkedIn](https://www.linkedin.com/sharing/share-offsite/?url=) [X](https://x.com/intent/tweet?url=&text=Continuation%20fund%20rollovers%3A%20compare%20fee%20dollars%20before%20fee%20rates) Copy link A lower management-fee rate can still produce a larger bill when an LP rolls into a continuation fund. The missing variable is the fee base: the amount to which that percentage applies. Comparing percentages alone can reverse the apparent answer. ILPA’s final October 2026 [continuation-vehicle guidance](https://ilpa.org/wp-content/uploads/2026/10/ILPA-Continuation-Vehicles-Advancing-Alignment-Through-Best-Practices.pdf) calls for comparisons of fee and carry economics over comparable holding periods using reasonable assumptions. Its framework primarily addresses existing LPs in closed-end private equity; it is best-practice guidance, not a contractual entitlement. ## A lower rate, a higher bill Consider an invented illustration, with constant fee bases and the same three-year period on both sides. These are teaching assumptions, not a real fund’s terms or representative market rates. The existing arrangement charges 1.5% annually on an $800,000 fee base. Multiplying $800,000 by 0.015 gives $12,000 a year, or $36,000 over three years. The proposed rollover charges 1.25% annually on a $1 million fee base. Multiplying $1 million by 0.0125 gives $12,500 a year, or $37,500 over three years. The rate falls by 0.25 percentage points, yet the illustrated management-fee bill rises by $1,500. A 25% increase in the base more than offsets the lower rate. That calculation says nothing about whether the underlying investment is attractive; it identifies one cost difference that a headline percentage conceals. Keeping the horizon identical matters. Comparing three years of one arrangement with five years of the other would mix the effect of the fee terms with the effect of time. Start with a common period to isolate the terms, then examine the consequences of different actual holding periods separately. ## Find the break-even base The same illustration provides a useful cross-check. At 1.25%, a $960,000 base produces the existing $12,000 annual bill: $12,000 divided by 0.0125 equals $960,000. Above that base, annual management fees exceed the illustrated existing charge; below it, they are lower, assuming everything else stays fixed. This threshold is specific to the invented inputs. It is not a valuation limit, a maximum acceptable commitment or a recommendation to reject the rollover. Its purpose is to make a percentage comparison testable in dollars. ## Replace the illustration with the election documents ILPA’s separate January 2026 [disclosure template](https://ilpa.org/wp-content/uploads/2026/01/ILPA-Continuation-Fund-Disclosure-Template.docx) asks for management fees in percentages and dollars, comparisons with existing fund terms and differences between rolling LPs and incoming investors. It is a summary aid; definitive transaction materials remain necessary. For the actual comparison, replace every assumed input and retain the document reference beside it. If the base or rate changes during the period, calculate each interval separately and add the results. A constant-base illustration cannot establish the bill under a declining base, a step-down or an extension. Record those unresolved terms as unknowns instead of silently carrying the first year forward. Management fees are only the calculation shown here. It excludes carry, transaction costs, tax, changes in asset value and the time value of money. Review those effects separately before drawing a conclusion about overall economics or making a sell-or-roll decision. The useful investment-committee statement is therefore specific: under these documented bases, rates and periods, management fees total this amount. A smaller percentage becomes meaningful only after the dollars behind it are visible. 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