How are fees calculated?
Sydecar calculates our SPV admin fee and management fees based on the SPV's total raise.
Sydecar's SPV fee is 2% of the total raise with a minimum of $4,500 and a maximum of $12,500. Our current fee calculation uses the following formula:
R = T + S(R) + M(R) + H
Where:
- R is the Total Raise
- T is the Amount to the Target
- S(R) is the Sydecar fee as a function of the total funds raised (or min/max fee)
- M(R) is the Management fee as a function of the total funds raised
- H is holdback for future expenses
So, for example, for a $100k total raise, with the minimum Sydecar fee of $4,500 and a 2% management fee charged for one year, the calculation would be as follows:
$100,000 = T + $4,500 + 0.02($100,000)
T = $93,500
M(R) = .02($100,000)
M(T) = $2,000
This equation works on a per-SPV or per-Investor basis.