I sourced a deal - how do I get paid
IB
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(Senior Baboon, 182
Points)
on 8/19/12 at 5:12am
Hi Guys
I just sourced a deal for my fund (VC/Growth Equity). We're talking low 8 figures EV.
Is there some kind of standard finder's fee in the market (people working in VCs/Summit/TA please advise)? What should I negotiate with my partners?






You are partner and you don't
You are partner and you don't know how to get paid on deals you find?
This to all my hatin' folks seeing me getting guac right now..
If you dont have a contract
If you dont have a contract dont think youre necessarily going to get paid. I have interned at pe firms where interns sourced deals as regular parts of their responsibilities and didnt get paid. Presumably you mean the deal has already gone through and the financing is currently taking place and you didnt just get a cim or youre going through DD/legal work. Also, are you an associate at this firm, or an intern?
“...all truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident.”
- Schopenhauer
I'm an associate at the firm,
I'm an associate at the firm, and I sourced the deal through own connections.
My job is not to source deals but it is the more standard PE associate job i.e. execution, modelling, etc. Deals are usually sourced from banks/partners connections.
i don't think the partners
i don't think the partners are legally obligated to give you any bonus
they're not legally obliged -
they're not legally obliged - but I'm sure they would agree that they need to pay for outstanding performance
Is there a reason you didn't
Is there a reason you didn't try to clarify with your firm earlier?
Turbo leverage for capital explosion -- BD Capital
My WSO Blog
SirTradesaLot: Is there a
Is there a reason you didn't try to clarify with your firm earlier?
Yea, this seems like more of a front end question...
If I had asked people what they wanted, they would have said faster horses - Henry Ford
I interned at a VC and ended
I interned at a VC and ended up bringing in an investor for one of the portfolio companies that needed a bridge loan. I received a 5% 'finders fee'.
Take a look at this:
http://www.msilimited.com/Downloads/Fees%20and%20S...
Someone in another forum said "There is a standard followed by most finders called "Lehman Formula". But you can literally ask whatever you think is right -between you and the startup guys"
Thanks captainkoolaid I heard
Thanks captainkoolaid
I heard Summit Partners pay associates $200k per deal sourced
Any other reference points / advice appreciated!