Sponsor compensation includes a $2,241,250 acquisition fee, a $35,000 annual asset management fee, and a 1% refinancing fee, alongside $923,258 in dealer fees.
Front-end fee composition
Acquisition Fee$2.24M4.85%
Dealer Fee$0.92M2.00%
Total front-end sponsor compensation$5,562,197 6.82% of acq. cost
Acquisition Fee
$2,241,250
4.85%
Dealer Fee
$923,258
2.00%
Total Front-end Fees
$5,562,197
6.82%
Strengths
- Asset management fee is fixed at $35,000 annually
Concerns
- Acquisition fee of $2,241,250 paid at closing
- 1% refinancing fee payable upon future recapitalization
- Broker-dealer and marketing allowances total $1,154,072