On "one off" JV deals, I have typically seen AM fees modeled where the sponsor/GP asset manages on behalf of the partnership, with a fee (typically 1.0-1.5%) charged on Total Income (not NOI, but total income before expenses similar to how prop mgmt fees are based).
On deals where a Fund is investing, I have seen it based on a similar % fee, but on the equity amount invested in the deal. i.e. if $10MM of equity is invested in a $25MM acquisition, then the AM fee is computed on that $10MM slug. Basically, property performance doesn't come into play.
Is this generally what others have seen out there? I worked for the Fund mentioned above, and the firm was always hyper focused on how much AM fee it generated (the Fund had raised and deployed north of $1B in equity), so the fees were quite significant based on equity invested.
I imagine that if the Fund JV'ed with a sponsor on a deal, then there would be multiple AM fees being charged, one by the sponsor, and then one by the Fund back to their limited partners?
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