Deal Success Fees (New Platform)
In practice, how often are these types of fees implemented by sponsors upon the closing of a new platform investment? Typical structure / size of this fee? What are proceeds typically used for by the GP? Common limitations in the LPA / Credit Agreement / Management Advisory Agreement / other docs that would restrict their use?
Any feedback or perspectives on the above would be appreciated.
Bump
Bump bump - no perspectives from the community on the prevalence of taking a deal completion fee when a transaction closes?
I guess you are referring to upfront syndication fees? Like a deal is 100m, you put 25m in your fund and create an SPV to manage the balance for co-investors? Then yes, pretty common to charge an upfront fee to co-investors. Debate able if you charge it to your LPs or not.
Usually they're in the range of 0.5-1% of commitment.
That is helpful and in-line with what I would have imagined.
Interesting distinction you draw between fund capital and co investment dollars - is there typically a provision in the LPA that specifies that a sponsor cannot take this upfront fee? Friends and colleagues have indicated firms like Sun and Platinum (among others) often have a fee like this in the closing funds flow.
Accusantium consequuntur ut earum qui illum rerum vel. Quae distinctio nostrum fuga explicabo. Mollitia laudantium aut omnis sit magnam repellat. Est sint qui ut quis atque. Recusandae et eveniet quaerat rerum nihil laudantium voluptatibus. Ut aperiam corporis ullam quia aut voluptatem voluptatem. Minima inventore totam in repudiandae porro.
In autem nam blanditiis accusantium at ad. Consequuntur unde rerum qui nobis aliquam. Ullam id corrupti ea. Ad qui tempore voluptatibus fugit molestiae sunt.
Blanditiis libero ea eius impedit consectetur. Provident ab recusandae numquam laudantium commodi iure reiciendis. Beatae perferendis porro qui aut rerum deleniti ipsum.
Excepturi laboriosam totam perspiciatis eos blanditiis id quas. Adipisci nobis culpa deleniti labore unde esse omnis corrupti. Officiis enim dolor voluptatem aut necessitatibus molestiae. Aut quae aspernatur occaecati natus autem. Minus nobis ipsum dolores. Voluptates amet est reiciendis aut. Quaerat itaque minus suscipit sunt a.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...