Heron has a 1% annual management fee. There are no performance fees.
In addition to the 1% management fee, for pre IPO company strategies only, there is a flat 5% transaction fee *when your fees are allocated*, which covers all underlying costs, and gives you a simple blended rate across the varying fees of the brokers we work with, some of which are higher than 5%. Note there is a 5% transaction fee for deposits as well as redemptions (to cover the underlying costs that exist in both directions).
Importantly, if your funds are not allocated for pre-IPO, the transaction fee is not charged, pro rata to the amount allocated. So for example, if you deposit $100k, there would be a $5k transaction fee hold, but if we can only allocate half, then you would only be charged $2500 for the transaction fee, and we would return the other $2500 as well as the unallocated capital should you want them back. You could also roll it over for another quarter to see if we can allocate it.
The AUM fee is charged each month according to the number of days in the month (e.g. the January fee is equal to 1% * 31/365) multiplied by your balance at the end of the month.
If you wish to change your private credit fees to be taken from principal (to make your take home interest higher), contact us at support@help.heronfinance.com