In real estate funds created for mostly $($continental$)$ European investors there are separate fees for asset acquisition $($one time fees$)$ and fund management $($recurring fees$),$ whereas most funds created for "Anglo$-$Saxon" investors $($US and UK$)$ only have "management fees", which are paid from the moment the fund has had its first closing $($regardless of whether acquisitions have been made or not$).$

Furthermore, most European funds tend to calculate both types of fees $($acquisition and management fees$)$ on total value $($gross asset value$),$ whereas US funds base management fees only on the fund's equity $($net asset value$).$ Here is a comparison oContinental$)$ European investors do not like to pay management fees, if the fund has not yet made any acquisitions $($as investors do in "Anglo$-$Saxon" style funds, where the obligation to pay fund management fees start the moment the fund has its first closing$).$ US investors argue that having to pay separate acquisition fees "incentivizes" the fund manager to "put out the money" and invest as quickly as possible $($even in unfavorable market conditions$).$

Discuss the following:

Who is right, European or American investors?

Who has the better arguments?f typical fees: