Front-end sponsor and broker-dealer fees include $1,150,000 in acquisition fees, 6% selling commissions, $488,759 placement agent fee, and a 2.5% future refinancing fee.
Front-end fee composition
Acquisition Fee$1.15M4.12%
Dealer Fee$0.49M1.75%
Wholesaling Fee$0.21M0.75%
Total front-end sponsor compensation$2,738,084 5.95% of acq. cost
Acquisition Fee
$1,150,000
4.12%
Dealer Fee
$488,759
1.75%
Wholesaling Fee
$209,468
0.75%
Total Front-end Fees
$2,738,084
5.95%
Strengths
- Sponsor compensation items and broker-dealer concessions are fully disclosed
Concerns
- Acquisition fee of $1,150,000
- Dealer fee of $488,759 and placement agent fee of $488,759
- Refinancing fee of 2.5%