RA Capital provides investment advice to several funds focused on healthcare, life sciences, and planetary health. These funds are available only to financially sophisticated investors. RA Capital makes investment decisions for these funds, tailoring its advice to the funds' objectives, not the underlying investors. RA Capital's affiliates also serve as general partners for these funds.
Fee Structure
RA Capital manages investments for its client funds and charges a management fee based on the value of the assets managed. The general partners of the funds also receive performance-based compensation based on the funds' profits. Management fees are generally 2.0% per year. The carried interest is generally 20% of profits. Fee arrangements for the separately managed account are individually negotiated and may include performance fees.