Deal terms
Disclose sponsor fees and compensation
Describe who gets paid, when, and how the amount is calculated.
Product documentation · Version 2.0 · Updated October 1, 2026
Inventory every arrangement
Review acquisition, management, financing, disposition, development, servicing, organizational, and other fees that apply. Include expense reimbursements and payments to affiliates. Compensation may exist outside a distribution waterfall.
Explain the calculation
State the recipient, rate or amount, calculation base, timing, and any cap, waiver, deferral, or offset. A percentage of revenue differs from a percentage of invested capital. Describe promote or carried-interest economics alongside the waterfall and governing documents.
If there is no fee
Document the actual absence of a fee and check related-party arrangements. Do not add nonexistent fees to satisfy a completion threshold. Return to this section when the governing agreements change.
Write the basis and timing as well as the percentage
A fee row needs a descriptive label, calculation basis, and timing. “2% management fee” is incomplete if it does not say 2% of what, paid when, and to whom. Use the actual agreement terms; suggested rows are starting prompts rather than facts about your compensation.
For example, 1% of committed capital and 1% of invested capital can produce different amounts. An annual fee and a one-time closing fee also have different economics. Record offsets, reimbursements, caps, related-party recipients, and any carried interest or promote in the appropriate narrative and governing documents. Cross-check fees against proceeds, financial assumptions, conflicts, and distributions.
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