Asset Management Fees & Return of Capital
Curious if anyone can provide some insight on how AM fees paid on invested equity would be handled in a scenario where the investor's initial equity is fully returned from debt refinancing proceeds. In this scenario the investor receives a full return of their initial equity investment, so technically invested equity goes to zero, however, the asset is still owned and still needs to be managed. Does the manager/sponsor just not earn an AM fee for the remainder of the hold period?
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