The market in asset management:
Providers and customers | Fee structures | Invitations to tender | Market standards
What costs are incurred by external asset management?
It is not possible for a universal answer to be provided in relation to this question. The extent of the relevant fees depends on a wide range of factors, and is based mainly on the portfolio structure and the agreed extent of services.
In order to provide better orientation, the enclosed table sets out the individual components with their values based on an arm’s-length consideration.
Costs may differ depending on complexity and period.
Quelle: Erhebung der Unternehmen Asset Management Excellence
In addition to the fee components specified at this point, it is also necessary to consider the profit-linked remuneration in the case of co-investments. The purpose of this remuneration is to enhance the equality of interests between the asset manager and the investor and also to enhance the motivation to devote maximum intensity towards ensuring that the property is optimised. This remuneration is linked to profit,
and is higher than a minimum IRR hurdle (between 7 % and 14 % IRR depending on the fund and the customer), and may result in significant figures in the event of success. The co-investment of an AM service provider is usually between 2.0 % and 10 % of equity. Without co-investments, profit-linked remuneration is either not possible or is much lower.