Bancroft's investment programs are uniquely tailored to meet the needs of the Company's individual and institutional partners. Through Company sponsored partnerships, Bancroft provides investors with the opportunity to participate in the resurgence of targeted commercial real estate markets while taking steps to mitigate risk. Toward that end, Bancroft has designed a partnership vehicle that provides attractive annual and holding period returns to the investor and performance based incentives to the Company.
Bancroft not only eschews fees on the front end, but also many other fees that our competitors employ to ensure that any partnership will be profitable for them no matter how the investment performs. These fees include acquisition fees (typically 1% of the purchase price), disposition fees (typically 1% of the sale price) and leasing overrides (typically 2% to 3% of the full value of a signed lease). In fact, the only fee that Bancroft Capital deems reasonable is an asset management fee, which enables the company to cover the cost of managing the partnership and its assets.
Furthermore, Bancroft's "junior equity" investment in the partnership is structured such that investors receive a 100% return of invested capital prior to the Company receiving any return of its invested capital. For example, in the event of a significant deterioration in the value of the partnership asset, investors will receive all of their invested capital before Bancroft recovers any of its invested capital.