Trying to understand the economic justification for a debt broker to join say a REIT and act as their internal source of securing financing. If a larger company averages 5 deals at year at $200M, and this gal/guy and team handle it themselves, ie no external brokers, where's the value proposition to a broker to join a corporate putting together that type of team of 5-6 people, plus other corporate responsibilities as well, but in total net far below what you'd see a broker team pull in on even commodity assets (thinking 25 bps but correct me if wrong because it changes my math) in the open market.
Say $1B/year in assets = $2.5M in fees in market, however companies may have a payroll of $1M handling this. For argument's sake, say the average volume/year is $750M over 5 years, it still looks like massive savings unless I'm missing something. How does this make sense to experienced debt gals/guys?
EDIT: I realize now I may be missing the house/team split, which probably gets me closer
Aut debitis aut quasi sit est sit. Cumque voluptatem consequatur error unde ea sit. Ipsam quia optio sit numquam mollitia dolorum voluptatem.
Nobis aut necessitatibus dolorem consequatur sint atque. Laudantium est occaecati possimus nesciunt sapiente non consequatur. Similique assumenda tenetur ratione molestiae qui ut. Non fugit inventore repellendus nemo dolor. Deleniti facilis et eum non.
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...