Meaning of “incentive fee” in the English Dictionary

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"incentive fee" in Business English

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incentive feenoun [ C ]

uk us FINANCE

money paid to a person or company that manages investments to encourage them to make as much profit as possible:

The bank was entitled to an incentive fee of 3% of any increase in offer price.
The average hedge fund incentive fee has dipped 1% in the last year.

(Definition of “incentive fee” from the Cambridge Business English Dictionary © Cambridge University Press)