Distinct from the syndication-waterfall calculator on this site, which covers the profit split — this totals the sponsor’s fee load, charged regardless of how the deal actually performs.
How it works
Acquisition fee (a percentage of purchase price), total asset management fee (a percentage of equity charged annually over the hold), and disposition fee (a percentage of sale price) sum to total fees, expressed as a percentage of equity raised.
What this does not include
Some syndications also charge additional fees (financing fees, construction management fees, guarantee fees) beyond the three core fees modeled here — always review a specific deal’s full fee schedule in its offering documents.
How to use this calculator
- Enter purchase price, acquisition fee rate, equity raised, annual asset management fee rate, holding period, sale price, and disposition fee rate.
Frequently asked questions
Why does fee load matter to an investor?
High fees reduce net returns regardless of deal performance — comparing fee load across potential investments helps investors see how much of their capital effectively goes toward fees versus the underlying investment.
Is a higher fee load always a red flag?
Not necessarily — an experienced sponsor with a strong track record may justify higher fees, but fee load should always be weighed against the sponsor’s demonstrated ability to execute and the deal’s overall projected returns.
How does this relate to the syndication waterfall?
Fees are charged before the waterfall’s preferred-return and promote split even applies — fee load and waterfall structure are two separate, cumulative costs to an investor’s overall return.
