2 and 20
"2 and 20" refers to the typical compensation structure for a private equity investment fund (including venture capital, seed funds, etc.). These funds generally receive 2%-2.5% of their committed capital per year as a management fee and 20% of any profits (called carried interest in the private equity industry) they generate. While these numbers are standard some firms are able to get slightly higher management fees--up to 2.5%--or higher carried interest--up to 30%. See How Equity Investment Firms Work for more information.