performance-based fee
[/pərˈfɔːrməns beɪst fiː/]
nounpl: performance-based fees
taxa baseada em desempenho
1. A fee charged by a service provider (such as an investment manager, consultant, or professional) that is calculated based on the results or outcomes achieved, rather than a fixed amount
The hedge fund charges a performance-based fee of 20% of profits earned above a certain threshold.
O fundo de hedge cobra uma taxa baseada em desempenho de 20% dos lucros obtidos acima de um certo patamar.
2. A compensation structure where payment is contingent on meeting predetermined performance metrics or targets
The consulting firm proposed a performance-based fee arrangement tied to measurable improvements in client efficiency.
A firma de consultoria propôs um arranjo de taxa baseada em desempenho vinculado a melhorias mensuráveis na eficiência do cliente.
This term is prevalent in the Brazilian and American financial services industries, particularly in investment management, consulting, and law. In Brazil, performance-based fees have become increasingly common in private equity, hedge funds, and management consulting. The term reflects a shift toward results-oriented business models where service providers share in the risk and reward of their clients' success, aligning incentives between providers and clients.
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