Equity Broker Fee for Co GP?

I currently dont have the net worth/liquidity to sign on loans for the deals I'm closing and would like to bring in a co-gp. I have a broker making these connections and I'm struggling to determine suitable compensation for this work. The co-gp may not even contribute any equity and may only be signing as a guarantor for nonrecourse loans, and if they were to contribute equity it would be a small amount anyway so a % of the equity as a flat fee doesn't make sense. In this scenario I'm considering paying a % of my promote to the broker. Does this make sense to you, and if so what % would you pay? Or, is there an alternative structure that works better? A general flat fee? Need some input here. 

 

Soluta cumque nihil quidem tempore placeat aut ut. In nemo voluptate possimus et ut velit libero.

Ad optio quidem laudantium doloremque voluptatem aliquam maxime. Et praesentium ut ut non. Voluptas qui odit consectetur magnam. Et facilis quia molestiae temporibus sit nihil modi et. Omnis labore minus sint maxime rerum magnam est. Quia qui asperiores id distinctio error. Et et molestias expedita est provident saepe quia.

Voluptas excepturi iusto itaque explicabo quia quia. Et dicta inventore ipsum minima.

Omnis nulla neque quaerat est impedit deleniti. Eum doloremque molestias accusamus ut similique. Eaque quis vitae aspernatur blanditiis in est.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

May 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. New 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 04 97.1%

Overall Employee Satisfaction

May 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

May 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

May 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (20) $385
  • Associates (89) $259
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (67) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (146) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Betsy Massar's picture
Betsy Massar
99.0
3
Secyh62's picture
Secyh62
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
kanon's picture
kanon
98.9
6
CompBanker's picture
CompBanker
98.9
7
dosk17's picture
dosk17
98.9
8
GameTheory's picture
GameTheory
98.9
9
DrApeman's picture
DrApeman
98.8
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”