Changes in fee terms as well as new guidance regarding GAAP consolidation and potential future tax developments can impact how fund sponsors structure and negotiate their investment vehicles.

Despite a slight downturn in capital-raising activity during 2014,1 US real estate fund sponsors can expect 2015 to support overall fundraising success as a result of a variety of economic factors. In doing so, however, sponsors should be cognizant of the latest trends in fee terms, new accounting guidance and potential developments in future tax rules. This Client Alert highlights these trends and potential developments.