---
title: "Fee Waiver | Altss Glossary"
description: "A fee waiver is when a GP reduces or waives management fees, often via side letter economics."
canonical: "https://altss.com/glossary/fee-waiver"
---

GP Economics & Fees

# Fee Waiver

Publisher: Altss LLCPublished 2026-01-12Content modified 2026-01-12

A fee waiver is when a GP reduces or waives management fees, often via side letter economics.

**Allocator relevance:** Medium–High — can be a pricing lever, but also a governance signal about economic consistency and MFN fairness.

**Expanded Definition**
Fee waivers can be early-bird incentives, strategic relationship pricing, or capacity-fill tools. They may be time-limited, commitment-size dependent, or tied to other concessions. Institutions evaluate the full package: a lower fee can be paired with weaker governance rights, altered reporting, or other trade-offs.

**Decision Authority & Governance**
Governance includes side letter documentation, MFN scope, disclosure practices, and administrative controls to ensure correct fee billing. Allocators assess whether economics are applied consistently and whether similarly situated LPs receive equitable terms.

**Common Misconceptions**

- Fee waivers are always beneficial with no trade-offs.

- If one LP gets a waiver, everyone does.

- Waivers don’t need robust operational tracking.

**Key Takeaways**

- Evaluate waivers as part of the full diligence package.

- MFN and side letter governance matter.

- Billing accuracy and auditability are essential.

## Related terms

[Side Letter](https://altss.com/glossary/side-letter)[Most Favored Nation (MFN)](https://altss.com/glossary/most-favored-nation-mfn)[Management Fee](https://altss.com/glossary/management-fee)

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