A fee paid to SPV Organizers for their time and effort in managing the investment relationship between the SPV and the investment portfolio. Some of the activities an Organizer may engage in are tracking the progress of the asset, reviewing investment portfolio reports and materials, administration tasks of the SPV like post close activities and distributions and wind down of the SPV when the investment portfolio has its final exit event. Management fee can be a one time payment or annual payment. Most SPV Organizers do not charge their SPVs with a management fee or they will charge the SPV with a one time fee when the deal closes. Venture capital and private equity funds are known for charging a 2 – 3% annual management fee to pay the operational expenses associated with running the fund. For example, if a fund had legal expenses, travel expenses, investor meetings, etc. these are all examples of expenses that would be paid from a management fee.