VIII. Fees
Staged, Transparent.
Newton Ventures’ fees are staged and linked to specific points in the funding process. Because every Funding Request differs in complexity, exact fees are agreed with each Client individually and confirmed in the Client Fee Agreement — contact us to discuss the fees applicable to your Funding Request.
Newton Ventures does not operate on a pure success-only basis because meaningful work is required before completion and, in many cases, before a Funding Channel and/or Lender/Investor can properly assess whether serious terms can be issued.
This work may include analyst review, document assessment, funding suitability analysis, financial model commentary, capital structure review, Credit File preparation, Funding Channel engagement, data room preparation, due diligence coordination and transaction management.
The staged fee structure is designed to ensure that:
- —The Client is committed to a serious process
- —Appropriate analyst and management resources can be allocated
- —The Funding Request is prepared and presented professionally
- —The Funding Channel can undertake the work required by its Lenders/Investors
- —The Client receives value before completion, not merely an introduction
Success-only or introduction-only arrangements may be suitable for simple transactions. However, complex Funding Requests usually require preparation, structuring, evidence review and coordinated due diligence before a serious funding outcome can be achieved. Fees are therefore not charged simply for access to a funding contact — they are charged for the professional work required to prepare, position, submit and progress the Funding Request through the relevant stages of the process.
| Fee | Stage |
|---|---|
| Commitment Fee | When Newton Ventures confirms the case is ready for Credit File submission to obtain Letter of Engagement and Indicative Terms |
| Remaining Progression Fee + Funding Channel Contribution Fee | Upon signing Letter of Engagement and Indicative Terms and entering full due diligence |
| Newton Ventures Completion Fee + Funding Channel Completion Fee | Upon completion / drawdown |
| Walk Away Fee / equivalent offer fee | Only if Binding Written Offer Terms are obtained and the Client walks away in circumstances covered by the Client Fee Agreement |
Commitment Fee.
The Commitment Fee is payable only when Newton Ventures confirms it is able to submit the Client’s Credit File for the purpose of obtaining the Letter of Engagement and Indicative Terms.
The Commitment Fee forms part of the Progression Fee — it is not an additional fee — and is set on a case-by-case basis to reflect the complexity of the Funding Request. If the Client proceeds by signing the LoE & ITs and entering full due diligence, the Commitment Fee is deducted from the Progression Fee.
Subject to the Client Fee Agreement, the Commitment Fee is refundable only if no LoE & ITs document is produced for the Client within 15 Business Days of the Credit File being submitted and the Client requests the refund in writing.
Newton Ventures’ Progression Fee is set on a case-by-case basis, reflecting the complexity, size and resource required for each Funding Request. Contact us to discuss the fee applicable to your Funding Request.
The Progression Fee covers Newton Ventures’ work in assessing the opportunity, undertaking initial review, preparing and submitting the Credit File, obtaining the LoE & ITs and continuing to assist the Client throughout the Funding Request.
The Commitment Fee forms part of the Progression Fee and is not in addition to it. Any remaining balance is only payable if the Client signs the LoE & ITs and proceeds into full due diligence. If the Client does not sign, no further Progression Fee is payable to Newton Ventures and no Contribution Fee is payable to the Funding Channel.
Progression Fee Payment Options
| Option | Description |
|---|---|
| Option 1 — Payable on Letter of Engagement and Indicative Terms execution | The balance of the Progression Fee is payable when the Client signs the LoE & ITs and proceeds into full due diligence. |
| Option 2 — Staged retainer structure | The balance of the Progression Fee is paid in staged payments during the due diligence and underwriting process. Where this option is selected, the total Progression Fee is higher to reflect the staged payment arrangement. |
The Client’s choice of payment option does not affect the likelihood of the Funding Request being successful, the way the Funding Request is reviewed, or the Funding Channel’s due diligence process.
The Funding Channel’s Contribution Fee is set on a case-by-case basis. Certain jurisdictions or transactions may require a higher contribution due to additional AML/KYC, compliance, third-party report or due diligence requirements.
This fee covers the Funding Channel’s work in undertaking much of the due diligence required by Lenders/Investors, allocating a dedicated analyst, providing director-level involvement and commissioning or coordinating various third-party reports where required.
Newton Ventures’ Progression Fee, or the relevant staged amount under the Client Fee Agreement, and the Funding Channel’s Contribution Fee must both be paid before full due diligence with the Funding Channel can commence.
Completion Fees.
Newton Ventures’ Completion Fee typically ranges between 1% and 3% of the Investment Amount. The applicable percentage is generally higher for smaller Investment Amounts and lower for larger Investment Amounts, subject always to the Client Fee Agreement and the nature, size, complexity and structure of the transaction. The Funding Channel’s Completion Fee is typically 2% of the Investment Amount.
Completion Fees are deducted from completion monies where possible, with the Investment Amount adjusted to cover these fees where applicable. Where the Investment Amount is drawn down in tranches, it may be possible for Completion Fees to be paid pro-rata against each tranche.
| Investment Amount (USD) | Typical Completion Fee |
|---|---|
| $5,000,000 – $20,000,000 | 3% |
| $20,000,001 – $35,000,000 | 2.5% |
| $35,000,001 – $60,000,000 | 2% |
| $60,000,001 – $100,000,000 | 1.5% |
| $100,000,001+ | 1% |
A fee structure designed to align Newton Ventures with the Client through to completion.
The Walk Away Fee may apply if Binding Written Offer Terms are produced which are in line with, or better than, the LoE & ITs and the Client then decides not to proceed, subject to the further conditions set out in the Client Fee Agreement.
In reality, this fee should not need to be paid where the Client proceeds with a suitable Binding Written Offer Terms process in good faith. It exists to reflect the significant time and costs incurred where a substantially matching or improved offer is obtained but the Client chooses not to proceed for reasons within the Client’s control. The applicable amount is set on a case-by-case basis and confirmed in the Client Fee Agreement.
The Lender/Investor may also charge a completion fee, commonly around 1%, which would be confirmed within the Binding Written Offer Terms. This would normally be added to the Investment Amount, although the Binding Written Offer Terms would confirm this.
The Client will also be responsible for its own legal fees and, where required, the Lenders’/Investors’ legal fees after Binding Written Offer Terms have been issued. Depending on the transaction, there may also be costs associated with valuations, performance bonds, insurance, security registration or other required third-party products or services.
Important Note
All fees are subject to the final Newton Ventures Client Fee Agreement, Letter of Engagement and Indicative Terms and any relevant Funding Channel documentation and Lender/Investor documentation. The fees outlined on this website are provided for general transparency and guidance only.