LP Equity Fee - Model Question

Hi Everyone,

I am working on a case study and had a question regarding where to put the LP financing fee.

In this case study, if I have to pay a fee to a company for helping me raise LP Equity, and the fee is a % of the LP equity, where would it go?

I believe this fee should be reflected in the uses of a sources and uses summary so would it be considered a part of the acquisition costs? If so, how do would you calculate this because it seems a bit circular...

Thanks in advance

2 Comments
 

You can capitalize it out of the proceeds of your acquisition or development loan, the LP can capitalize it, or you can come out of pocket and cut a check.

 

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