Accelerated Monitoring Fees

Accelerated monitoring fees are charges that a company must pay when it ends a service agreement with a private equity firm or financial advisor earlier than originally planned. These fees are usually connected to ongoing advisory services that the firm provides to the company. When the service ends early, the firm charges these fees to make sure they still get paid for the entire time they were supposed to work, even though they stop providing the services.

Example

If a private equity firm is hired to advise a company for ten years, but the company is sold after seven years, the firm might charge the remaining three years of fees upfront, even though they won’t be doing any more work.