Fund managers say the framework undermines negotiated fee structures, restricts drawdown flexibility and could discourage large anchor investors from backing private-market funds.
Under Sebi’s proposed framework, however, returns would continue to be allocated according to commitments, giving Investor A 90% and Investor B 10%. Under an investable-surplus model, returns would instead reflect actual capital deployed, resulting in a 90.2% share for Investor A and 9.8% for Investor B.
