Offering budget template
This template lists the line items that belong in an offering budget and the detail to record for each one. A sponsor or capital raiser completes it before the offering goes to a family office or another reviewer.
The template
| Field | What to record | Why a reviewer cares | Your entry |
|---|---|---|---|
| Raise size and acquisition program | Planned equity raise, total acquisition volume and the debt to equity split, for example $500 million raised against $1 billion acquired, financed equally with debt and equity. | Every fee total scales with these inputs, so a reviewer checks that each later figure rests on the same raise and acquisition assumptions. | |
| Upfront fee load | Every charge collected at the time of sale, expressed as a percent of offering price, with the combined percentage shown on its own line. | Upfront fees for nontraded REITs can reach 15 percent of the offering price, which directly reduces the money available to invest. | |
| Investable proceeds | Dollars left for property purchases after upfront fees and offering costs, shown as an amount and as a percent of gross equity raised. | Fees at the front of an offering reduce investable proceeds, so reviewers want the net figure beside the gross raise. | |
| Administrative fee | One time fee paid to the manager, up to 2% of the cost of units purchased, with the offsetting organizational and offering costs named. | Because it is a one time charge on units sold, reviewers test whether the covered costs also appear as separate budget lines. | |
| Acquisition fee | Rate as a percent of total deal size, typically 1% to 2%, with the sliding scale breakpoints for larger deals and the dollar amount at planned volume. | The rate usually sits between 1% and 2% and generally falls on larger deals, so a rate outside that band invites questions. | |
| Asset management fee | Ongoing fee rate and the base it applies to, with the annual dollar amount at the planned acquisition volume. | Acquisition and asset management fees may add costs beyond upfront charges, and the base chosen determines how large the ongoing charge becomes. | |
| Ten year fee projection | Cumulative fees over 10 years under the stated raise and acquisition assumptions, such as $365 million in a sample $500 million raise with $1 billion acquired. | A single multiyear total lets a reviewer compare the full fee burden against the equity raised and see how assumptions drive it. | |
| Legal and offering documents | Fees for outside securities counsel who prepare the offering documents, with the engagement scope and the amount quoted. | Reviewers expect offering document preparation costs to appear on a distinct line that is separate from sponsor overhead. | |
| Financial modeling and structuring | Cost of building the financial model and the economic structure of the fund, with who performs the work and how it is billed. | Modeling and economic structuring are part of fund creation, so reviewers look for them as budgeted work with a named provider. | |
| Capital raise consultation | Fees for advice on how the raise is run, with the provider and the scope of the engagement. | Consultation on the capital raise is a distinct service in fund creation, so its cost needs a boundary with modeling and legal work. | |
| Minimum investment and fund size | Smallest subscription accepted and the target and maximum fund size, with the fee percentages tied to those figures. | Capital raisers assess fund size and minimum investments when shaping an offering, so reviewers read the budget against those parameters. | |
| Conflicts and profit sharing | Affiliated parties paid from the budget, the profit share terms and the amount each affiliate receives. | Conflicts and profit sharing are among the items capital raisers assess, and paid affiliates are where they show up in a budget. | |
| Fee transparency disclosure | Plain language statement of every fee in the budget, naming where each appears in the offering documents. | Fee transparency is among the factors capital raisers assess, and unlisted charges weaken a reviewer’s confidence in the totals. |
How a reviewer uses a completed template
A reviewer begins with Raise size and acquisition program, because every later dollar figure derives from it. Upfront fee load comes next, since charges that reach 15 percent of the offering price shrink Investable proceeds before a single property is bought. The Administrative fee of up to 2% and the Acquisition fee of 1% to 2% are recomputed against the planned raise and compared with the Ten year fee projection of $365 million. Totals that fail to reconcile prompt questions to the sponsor. Fee transparency disclosure is read for plain wording.
Legal and offering documents sit beside Financial modeling and structuring as outside costs. Reviewers compare both with the Administrative fee, which is meant to offset offering costs. Overlap draws attention. A cost counted twice lowers confidence in the whole budget. Capital raise consultation needs a clear boundary with the others.
Common gaps in a completed template
Asset management fee often appears with a rate and no basis, so the dollar effect cannot be rebuilt. Minimum investment and fund size is sometimes filled in without any link to the raise assumed in Raise size and acquisition program, which leaves the fee percentages unsupported. Conflicts and profit sharing entries frequently list the sponsor affiliates without the amounts each affiliate receives, and the Acquisition fee is sometimes recorded as a flat 2% even though sliding scales generally give lower rates on larger deals.