Rho Acceleration provides investment advice to private equity funds that focus on investing in technology companies in the software and digital media sectors. The firm's investment strategy involves making initial investments in platform companies and reinvesting in sales, marketing, and strategic acquisitions. The firm's clients are primarily institutional investors, including private pension plans, funds-of-funds, and family offices.
Fee Structure
Rho Acceleration manages investments for private equity funds. The management fees are typically 2% of each investor's capital commitment, paid during the fund's investment period. After the investment period, the fee is based on 2% of the cost basis of portfolio securities held by the fund. Performance-based fees, called Carried Interest Percentage, are also charged, typically equal to 20% of the fund's net profits after returning capital contributions and a preferred return.