Profit Share

How returns are shared on Holdings deals

Profit Share

  • Applies to:All Holdings transactions
  • Open to:Individuals, HUFs, companies
  • Documents: Agreement and Schedule of Fees
  • Effective: Current financial year
  • Covers: Acquisition, holding, exit

Holdings transactions are priced in one of two ways. Where you buy or sell through us and hold the asset in your own name, we charge a transaction fee of two per cent of the consideration, payable on registration. Where we co-invest alongside you or manage the asset through to exit, we charge an acquisition fee of one per cent, an annual management charge of half a per cent of cost, and a profit share on the gain.

The profit share is twenty per cent of the gain above a hurdle of eight per cent a year, calculated after all costs of acquisition, holding and sale. If the hurdle is not met, no profit share is payable. Stamp duty, registration, valuation, legal fees and statutory taxes are borne by the owner at actuals and are listed in the Schedule of Fees attached to your agreement. Every figure is confirmed deal by deal in writing before you commit.

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