Management Fee
An ongoing fee charged for the administration and management of a securities offering. Sails.to operates on a success-based model with no upfront management fees.
Full Definition
A management fee is an ongoing fee charged for the administration and management of a securities offering. In traditional finance, management fees cover fund administration, portfolio oversight, regulatory reporting, and operational overhead - often ranging from 1–2% of assets under management annually, regardless of performance.
On Sails.to, the platform operates on a success-based model with no upfront management fees. The 1% distribution fee on direct investors and 6% on broker-introduced investors covers platform operations, compliance monitoring, and infrastructure costs. Issuers pay nothing until capital is actually raised and distributed.
Why It Matters
No hidden management fees means issuers know exactly what they pay and when. The success-based model aligns platform incentives with issuer outcomes - Sails.to only earns when the issuer successfully raises capital.
For investors, the absence of ongoing management fees means more of their capital goes to work in the underlying asset rather than being eroded by recurring charges. Compared to traditional fund structures where management fees compound over time, the Sails.to model delivers a materially better cost structure for both sides of the transaction.