How much does a syndication company with 1B AUM make?

[Guy Idan]

Hi all.

I was wondering what is realistic to make with $500M-$1B in AUM? Needless to say that I don’t expect specifics about a specific company or person on this forum, as I know some guys here are hitting those numbers, but just an estimate. 

The background to this question is I’m 25, started a successful business and exited it, and as I’m learning and getting into the real estate world, one of the things I’m trying to learn and evaluate is what is possible and at what targets. For example, what would it take to make 500k a year? What would it take to make $1M a year? What would it take to make $3M a year? Etc..

Thanks in advance

[Brock Mogensen]

It really depends on how the fees and promote are structured among the deals.  2% Asset Mgmt Fee and 20% promote is a high-level way to look at it. Let's use $500M AUM as an example.  At 75% leverage let's assume $125M in EUM.  If the portfolio throws off 10% Yearly Cash that is $12,500,000 -- your 20% would be $2.5M. Plus Yearly Asset Mgmt Fees of ~$200K.  Syndication is a great business!