LUXCENTURE

Off-Market Fees (Logic, Not Percentage)

Built for discretion and rigor—retainer where structure is required, success where outcomes matter.

Off-Market Fees: A Model of How They Work

Off-market fees reflect the depth of work required to source, qualify, position, negotiate, and close—under higher confidentiality and higher process discipline than public deals.

Common Fee Models (Illustrative)

1) Success Fee
Outcome-aligned fee payable upon closing. Often used where the scope is straightforward and timelines are predictable.

2) Retainer + Success Fee (Hybrid)
A retainer covers structured work (sourcing, screening, documentation coordination, controlled outreach). The success fee rewards outcome and closing execution.

3) Defined-Scope Advisory Fee
Used for specific deliverables such as valuation/benchmarking, diligence coordination, or strategic structuring support.

What Drives the Fee Logic

  • Asset class and operational complexity (real estate vs yacht vs jet)

  • Stakeholder count and confidentiality level

  • Jurisdictions, documentation, and compliance requirements

  • Urgency, availability constraints, and sourcing depth

  • Scope: introductions only vs end-to-end orchestration

FAQ Off-Market Fees

1) Do buyers pay fees or is it seller-paid?
It depends on the mandate structure, asset class, and market practice. Some deals are seller-paid, others involve buyer representation fees, and some use a hybrid model. Luxcenture clarifies the commercial structure upfront so incentives are transparent.

2) Why do off-market mandates sometimes include retainers?
Off-market requires structured work before public visibility exists: sourcing depth, qualification, selective outreach, documentation governance, and coordinated diligence. A retainer can fund that execution discipline and increase certainty of progress. It also reduces “time-wasting” behavior on both sides.

3)What does the retainer cover in practice?
Typically: buyer/seller brief refinement, access work and outreach, screening and qualification, dossier preparation, process governance, and coordination across stakeholders. It can also cover project management through due diligence milestones. The exact scope is defined in the mandate.

4) How do you align incentives if there is a retainer?
By defining clear deliverables and milestones for the retainer portion and keeping a success component linked to closing. This ensures disciplined execution while preserving outcome alignment. The structure is designed to avoid conflicts and reward performance.

5) Can fees be structured for family offices with multiple acquisitions?
Yes. Family office mandates can be structured with portfolio logic—e.g., retained advisory capacity plus success-linked components per transaction. This improves continuity, reporting cadence, and pipeline execution across multiple opportunities. The goal is clarity, predictability, and alignment over time.