At times it is easy to be lulled into a narrow view when considering trends and market dynamics, with little movement apparent over shorter timelines. That is particularly true for fund economics, as many do not perceive them to be a major point of contention in current GP‑LP negotiations. That changes, however, if you zoom out to a longer time frame that can amplify actual market shifts. For example, average management fee rates have declined across most asset classes over the last 20 years, and management fee rates for real estate and PE funds are now at their lowest point since 2005. Those types of developments and trends in both economic and non-economic private fund terms were examined by Preqin in its 2024 Private Capital Fund Terms Advisor report (Report), along with a webinar that elaborated on the Report findings which featured Brigid Connor, assistance vice president, fees research lead; and Heather Heys, vice president, legal insights. This first article in a two-part series summarizes the trends and differences in management fees, performance fees and attendant fee-related considerations across PE, private debt and real estate funds. The second article will examine how a shift in GP and LP dynamics have manifested in changes in fund formation practices and governance provisions in fund documents. See “Recent Survey Shows Market Adversity Is Tempering LPs’ Ability to Negotiate Key PE Fund Terms” (Sep. 5, 2024).