Real estate funds will almost always have an asset management fee and carried interest. These are the primary ways the manager is compensated. The asset management fee is a small, yearly fee generally seen as supporting the manager’s ongoing operations, while the carried interest is a performance-based incentive earned by the manager for passing pre-defined return targets. If a manager is charging higher fees or taking more carried interest in a QOZ investment than one of their other funds or investments, the investor should understand why. Additionally, investors should look out for QOZ investments that charge additional fees, such as acquisition and disposition fees, and understand fully how the manager is getting compensated.