How to charge deal legal fees to a portfolio company - for a standard equity investment

Hi There,

Could someone walk me through the mechanics of how funds typically pay for deal legal fees out of the investment amount?

Specifically, if I want to invest 100K in a startup, and the legal fees will be 5K:
* does the term sheet and equity agreement state 95K?
* does the fund pay the 5K to the lawyers directly? and transfers 95K to the company once the deal is closed?
* in the deal memo and other investment documents, is this recorded as a 100K deal or a 95K deal?
* are the deal metrics (DVPI, MOIC) calculated based on 95K or 100K?

Am closing a warehouse deal in the next few weeks so would be great to get some guidance on how others have done this in the past. 

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