What fees does Venture Wealth Fund charge?
The Venture Wealth Fund (VWF) doesn’t charge fees. Instead, we have a 90/10 profit split between our investors (the Limited Partners) and us (the General Partner). That means you keep 90% of the profits and we keep 10%.
If the investment earns 10% in a year, you receive 9% and we receive 1%. If the investment earns 20%, you receive 18% and we receive 2%. If the investment doesn’t make a profit, we don’t get paid.
It’s a simple way to keep our interests aligned — the only way we do well is if you do well.
How does the profit split work across good years and bad years?
Let’s say you invest $100,000.
Year 1: Your investment grows to $115,000. Our 90/10 split means we earn $1,500 (10% of the $15,000 profit). That fee comes out of your account, leaving $113,500. This becomes your high-water mark — the highest value your account has reached.
Year 2: The market dips and your account falls to $110,000. Since that’s below your high-water mark of $113,500, we earn nothing this year.
Year 3: Your account climbs to $125,000. Profit is measured from your high-water mark, so it’s $11,500 ($125,000 – $113,500). We earn $1,150 (10% of that profit).
Bottom line: You only pay us when your account hits new profit highs. If you’re not making money, neither are we.
