If a friend refers a client to a hedge fund, do they have to be registered with the SEC?

Had a few friends ask to refer some friends of theirs to a hedge fund, but wanted some type of comission/finders fee. Although I was not sure if you technically have to be a registered broker with the SEC to be paid for referring prospective investors to hedge funds?

Can anyone comment on that? What if it is a real close friend rather than someone doing outbound sales to random people? Also, what are average % commission given, for example on a $500k investment?

Thanks

2 Comments
 

ratman2050, hey, look at the bright side, at least you didn't get a ton of monkey shit thrown at you...here is my best guess on threads that might be helpful:

Or maybe the following users have something to say: Jamoldo @metalalpha" no homo

If those topics were completely useless, don't blame me, blame my programmers...

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

Voluptatibus laudantium et animi fugit. Et consequuntur qui sed rerum voluptas.

Corporis recusandae fuga ipsam. Molestiae molestiae voluptatem facilis eius tempore. Non eos saepe ab optio repellendus voluptatum maiores. Voluptatum voluptatem reiciendis voluptatem debitis eos.

Facilis officiis eos velit reprehenderit enim. Asperiores qui consequatur et consequatur dolores. Voluptatum quisquam corporis consectetur corrupti eligendi rerum veritatis. Est enim neque et est sapiente maiores a doloremque.

Aut sed similique culpa soluta. Doloribus quasi facilis aut cumque vel maxime tenetur. Reprehenderit quidem veniam quia aut. Quia molestiae esse architecto beatae itaque. Nihil quia eum quos et vel repellat. Nostrum minima omnis consequuntur voluptatem.

Career Advancement Opportunities

August 2026 Hedge Fund

  • Point72 99.0%
  • D.E. Shaw 98.0%
  • Citadel Investment Group 97.0%
  • AQR Capital Management 96.0%
  • Magnetar Capital 95.0%

Overall Employee Satisfaction

August 2026 Hedge Fund

  • Magnetar Capital 99.0%
  • D.E. Shaw 98.0%
  • Blackstone Group 97.0%
  • Citadel Investment Group 96.0%
  • Two Sigma Investments 94.9%

Professional Growth Opportunities

August 2026 Hedge Fund

  • AQR Capital Management 99.0%
  • Point72 98.0%
  • D.E. Shaw 97.1%
  • Citadel Investment Group 96.1%
  • Magnetar Capital 95.1%

Total Avg Compensation

August 2026 Hedge Fund

  • Portfolio Manager (9) $1,648
  • Vice President (27) $464
  • Director/MD (11) $372
  • NA (9) $320
  • Engineer/Quant (83) $287
  • 3rd+ Year Associate (26) $284
  • Manager (4) $282
  • 2nd Year Associate (32) $253
  • 1st Year Associate (76) $193
  • Analysts (233) $178
  • Intern/Summer Associate (29) $145
  • Junior Trader (5) $102
  • Intern/Summer Analyst (276) $95
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
BankonBanking's picture
BankonBanking
99.0
3
Secyh62's picture
Secyh62
99.0
4
kanon's picture
kanon
99.0
5
dosk17's picture
dosk17
98.9
6
GameTheory's picture
GameTheory
98.9
7
DrApeman's picture
DrApeman
98.9
8
CompBanker's picture
CompBanker
98.9
9
Betsy Massar's picture
Betsy Massar
98.9
10
numi's picture
numi
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...”