Why does an LP still pay the full amount up-front if it is granted a management fee waiver or platform fee waiver?

A management fee waiver or platform fee waiver is a full or partial decrease of an LPs fees that it pays in respect of each quarterly fund.  If an LP has its fees waived, the LP will contribute the amount it would otherwise pay toward management fees to the fund, and such amounts will be treated as investable capital.  Such an LP will also have a notional increase in its capital contributions directly corresponding to the amount of such waiver for the purpose of calculating relative distributions. 

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