We charge several fees associated with alternative assets on Public that help offset the costs of asset management, storage, insurance, as well as our operations:
True-Up Fee: Depending on the asset, we charge a 0-10% markup on assets that go through an initial offering on Public. This fee enables our team to comprehensively analyze, source, and diligence on each of our investments, and pay brokerage and related fees. Our average is around 5%
Secondary Market Trading Fees: A 2.5% trading fee is assessed to each side (buy and sell) of secondary market transactions.
Management Fee: For some, but not all, non-cash-flowing assets, a 2% management fee is assessed annually to each asset. This fee is taken in the form of interests or shares, which in turn results in shareholder dilution. This fee does not apply to any series of Gallery or Collection.
Example: Let’s assume an asset has 10,000 outstanding shares and you own 100 shares (1%). After one year, the 2% management fee will be paid out to Public in the form of 200 shares. While you will still own 100 shares, your interest will be diluted as you will now own 0.98% (100/10,200) of the offering rather than the initial 1%.
Carry: In the event of an asset being sold, we may take a 10% fee on any profits
Cashflow: For cash-flowing assets, we may take up to 5% of revenues generated by the asset.
A detailed breakdown of the fees and acquisition-related expenses related to each offering can be found in the applicable offering circular. Also, please note: that our fee structure is subject to change at our discretion in the future, and we may waive fees.
If you have any questions, please reach out to Member Support through chat in the app or by emailing firstname.lastname@example.org.
Brokerage services for US-listed, registered securities available on Public are offered by Open to the Public Investing, Inc., member of FINRA & SIPC, and a wholly-owned subsidiary of Public Holdings, Inc. Brokerage services for alternative investments available on Public are offered by Dalmore Group, LLC, member of FINRA & SIPC. Alternative investments are over-the-counter equity securities that have been issued pursuant to Regulation A of the Securities Act of 1933. Dalmore Group, LLC and Open to the Public Investing, Inc. are not affiliated entities.