Catch-Up Provision

Catch-up provision is an incentive-fee provision allocating additional income to an adviser after the hurdle is met until the contractual sharing formula catches up.

Why this matters to income investors

A catch-up can cause fees to rise quickly after an earnings hurdle is reached.

How to use catch-up provision in your research

Read the fee formula and its base in the latest filing. Calculate what the charge takes from assets or earnings, then check whether waivers are temporary and whether the remaining income supports distributions.

This material is general education and information, not individualized investment, tax, or legal advice.