Hey guys, I'm kind of trying to think through something right now and could use your input.
I was talking with a friend at a large PE boutique (think $1B-$2B in AUM) who told me they sourced a deal, decided to pass, and then referred it to a few other PE funds they though might be interested. Well a megafund (think Bain, TPG, Apollo) they referred the deal to ended up doing it and as compensation kicked my friends firm back a $4 million finders fee.
I was wondering if any of you guys in PE have seen this happen between funds before. If yes, have you seen if there are stipulations for getting the fee? For example, when the fund refers the deal do they send a contract saying they expect a finders fee if you do it? Or do they have to attend every meeting the other fund does like a banker would do?
Thanks. Please ask Q's if you need clarification.
I'm not sure how they do it exactly (i'm somehwat new to PE), but my boss meets with private placement advising partners all the time. If we end up investing in the fund they're advising they get a percentage.
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