What is asset management fee and how its calculated by syndicators ?
Hi @Josie_martinez . Asset management fee is a fee that is charged by syndicators to manage the investments. Managing investments can mean managing entire business plans of the investments, preparing tax documents and all other work related to the investment part of the deal.
There are two ways that asset management fee is calculated. The usual way is to take certain % from gross income. Usually, it’s 1-2% of gross income. In the world of institutional equity investment/funds/reits, asset management fee is derived from % of asset dollar amount that is being managed. For example, if an asset manager is managing a 500m dollar asset (invested in various investments), then the asset manager can get % of that overall 500m being managed by him.