Enter the preferred return, profit split and fees. See what the deal would have to earn, and what actually reaches you, the investor.
Gross gain over 5 yrs: $1,011,357
Total fees: $185,114 (acq $50,000 · AM $100,000 · dispo $35,114)
Preferred return to you: $400,000
Above the preferred return: you $298,371 · sponsor's promote $127,873
Your total profit: $698,371 → about 11.2%/yr on $1,000,000
Fee load = 31% of gross gain goes to fees + promote.