Novacap provides investment advice to private equity funds, identifying and managing investments in operating companies. Novacap focuses on sectors like Technology, Digital Infrastructure, Industries, and Financial Services. Novacap seeks to improve the performance of acquired companies. Novacap is owned by its senior partners.
Fee Structure
Novacap receives general partner distributions (management fees) and carried interest distributions from the funds it advises. These fees are calculated based on a percentage of committed capital during the commitment period and net invested capital thereafter. The management fees range from 1.5% to 2.0% annually, depending on the fund type. Novacap may reduce or waive these fees for certain investors, including employees. Novacap also receives compensation for services performed for portfolio companies, which reduces the general partner distributions. Investors in the funds also bear certain expenses.