Programmatic JV - Advisory/Placement Fees
If a capital markets team at JLL/Eastdil/etc. arranges a programmatic JV for a sponsor how do the fees work?
Generally, equity placement fees are capitalized and paid upon the closing of an equity commitment on a single asset transaction.
What have you guys seen for programmatic JVs? What if we never do a deal with the capital partner that is sourced for us?
Perhaps a success fee + 2.50 bps per deal level capitalization moving forward? Trying to understand what is standard practice here.
Usually there is the initial placement fee for the first deal that is higher and then a lower fee for all subsequent deals. This first del will usually have the subsequent fee laid out in it.