RE #180: Chris Powers - GP Fees and The Pathway to Building a World-Class REPE Operating Platform

On this episode, Chris does a full deep dive into the world of fees, including what they are, should you be charging fees at all, and when, fee misconceptions, the benefits of a profitable company, and the pathway to building a world-class REPE operating platform. Chris also answers your questions submitted on Twitter and much more! Follow Chris on Twitter: www.Twitter.com/FortWorthChris Learn more about Chris Powers and Fort Capital: www.FortCapitalLP.com Follow Chris on LinkedIn: www.linkedin.com/in/chrispowersjr/ Follow Fort Capital on LinkedIn: www.linkedin.com/company/fort-capital/ (01:16) - Why Fees? (02:45) - Misconceptions: GP’s Charging Fees and Making a Profit is Bad (05:20) - Charging Market Fees and Getting Great Returns (06:49) - What are the benefits of running a profitable company? (10:05) - GP’s That Don’t Charge or Offer Reduced Fees are Hurting their OpCo in the Long-Run (11:01) - The Difference Between OpCo’s and Assets (13:18) - Understand Where Your Company is: Fee Structuring for Young Companies (15:03) - How to Charge Fees and How to Talk About What’s Behind the Fees (17:43) - How do we know what we can charge for and what we cannot? (21:24) - Fort Capital’s Fee Strategy Early On (23:35) - An Outline of How to Think About Fees and Example Scenarios (30:27) - GP’s That Don’t Charge What They’re Worth (31:25) - Ways to Think About What You Should Be Charging (36:04) - Running Your Company as a Break-Even Business vs. a Profit-Generating Business (37:53) - Specific Fees to Think About (49:18) - Real Estate Private Equity: Fees Charged to Allocate Capital to GP’s vs. Fees Charged by GP’s Who Actually Operate (50:47) - Charging the Right Structure of Fees for Your Business (53:50) - Twitter Question: What’s an example of a deal you’ve done and how the fee dollars are allocated? (59:00) - Third-Party Providers  (1:00:32) - Twitter Question: Can an established sponsor with capital charge an acquisition fee that’s equal to their contribution? (1:04:16) - Twitter Question: How have Fort Capital’s fees changed over time? (1:07:56) - Twitter Question: 3rd Party Management & Leasing vs. Vertically Integrating (1:10:14) - Wrap Up The FORT is produced by Johnny Peterson & Straight Up Podcasts

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Here, we uncover the proven strategies, insights, and inspiring stories of today’s greatest leaders in the worlds of business, real estate, entrepreneurship, and investing. Each episode’s mission is to help you to level up your entrepreneurial game by hearing directly from the men and women in the arena. Chris is able to uniquely uncover things not commonly discussed because he is an entrepreneur himself. We not only cover business, but we also cover the personal side of entrepreneurship. The Fort began in 2018 as a way for Chris to publicly explore the fascinating world of entrepreneurship. Since he was a child, he’s been characterized as obsessively curious about the world around him.  The Fort has now been downloaded over 2M times, across more than 50,000 unique listeners. Each week features conversations with entrepreneurs, Founders, CEOs, and Executives from some of the leading companies in America. Past guests have represented companies such as JLL, Hillwood, S2 Capital, Chick Fil A, Morning Brew, Founders Podcast, Tiny Capital, Permanent Equity, Fort Capital, Matthews REIS, Bonobos, and ConvertKit. 🐦 Follow Chris on Twitter: www.twitter.com/FortWorthChris 💡 Follow Chris on LinkedIn: www.linkedin.com/in/chrispowersjr/ 📹 Subscribe to The FORT on YouTube: https://www.youtube.com/@FORTpod