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
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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