Sponsor and broker-dealer compensation includes selling commissions of 5.0%, a placement agent fee of $562,350, BD marketing allowance of $489,000, BD due diligence allowance of $244,500, and $28,000 for DST admin and accounting.
Front-end fee composition
DST Admin & Accounting$0.03M0.06%
Total front-end sponsor compensation$3,740,850 4.76% of acq. cost
DST Admin & Accounting
$28,000
0.06%
Total Front-end Fees
$3,740,850
4.76%
Strengths
- Selling commissions and related fees capped at 7.65% of total sales.
Concerns
- Multiple broker-dealer allowances include $489,000 marketing and $244,500 due diligence.
- Placement agent fee is $562,350.