Richard Wilson: expenses within a performance-fee example

Richard described a performance-fee-only illustration that still allowed the deal to bear specified costs.

Costs could still be reimbursed

He mentioned inspections and travel connected with assembling a deal. He separated those expenses from the fee through which the manager earned a profit.

The label needed an explanation

Calling the arrangement performance-fee-only did not mean that every expense disappeared. In his explanation, the performance condition applied to the manager's profit-making fee.

In Richard C. Wilson's words

"maybe like the underwriting costs, the inspection costs, travel costs" (Richard C. Wilson, recorded Rainmaker Series module)

How to use this

Identify expenses separately from compensation in the example.
Explain which payment depends on performance.

Questions and answers

Did the illustration eliminate all costs?

Richard described charging certain deal costs back while earning profit through a performance fee.