It's Not 1999 Anymore
I completed an overview of a TIC offering for a client. The deal was raising around $10 million and was part of an established offering - each TIC deal is a separate part of the larger offering. The TIC deal had a non-accountable Organization and Offering fee of 4%. This means that the sponsor receives a fixed $400,000 for the legal and printing costs of the TIC deal no matter what the acutal cost. As the deal is part of a larger offering many legal costs have already been paid. The supplement discribing the deal was less than fifteen pages long. A stand-along TIC deal should pay approximately $150,000 for all its legal and printing costs, so this TIC deal's actual cost has to be much lower. This fee is egregious. It was not my only issue with this deal, but I don't want to waste computer ink on it.