Crescent Real Estate LLC provides investment advisory services, managing investments for private funds, structured product vehicles, and proprietary entities. Crescent identifies opportunities and acquires, manages, monitors, and disposes of investments for these funds. Investment advice is provided directly to the funds, not to individual investors in those funds. Crescent invests in various asset types, including bank loans, high yield credit, distressed debt, real estate, and equities.
Fee Structure
Crescent Real Estate generally charges its clients a management fee of up to 2.0% annually of contributed equity or committed capital, a flat fee, or a fee based on gross revenue. Fees are calculated and payable quarterly or monthly, either in advance or arrears. In some cases, Crescent or its affiliates are compensated by receiving an additional equity interest in a Fund in lieu of management fees or cost reimbursement. Crescent sometimes also receives a performance incentive fee through a profits interest, which (i) ranges from 10% to 60% of profits earned, (ii) is generally payable after the achievement of a hurdle rate and/or return of capital, and (iii) may or may not be contingent on the manager of the applicable Fund eclipsing a high-water mark. In some cases, certain Clients pay a different fee than others based on the terms of their agreement with Crescent.