This was prompted by the question about IB Analysts bringing in dealflow. Currently I am a junior level person at a PE firm and we are in the process of fundraising. If I make the introduction to an LP that eventually ends up making an investment into the fund, will this affect my compensation? They have stated that those who bring in deals will be rewarded for that, so would the same be true about bringing in investors? Should I raise this topic with my bosses (small shop, very close with everyone) before making introductions?
Thanks in advance.
I think you should introduce the client and see if they actually invest before you ask for/mention additional compensation. Since it's a small shop, you need to be careful about asking for more money and you don't want to rub people the wrong way.
n/a
Placement agents charge 2-3% of equity raised, so that will help you quantify your contribution at the market level. You will not see this kind of compensation, but the point is that people will know what it's worth and will likely give you some reward.
If you bring in $ for a fund that really does not need the $, then you're really not adding value
Also, if you just happen to make an intro, that's not really worth much
I'm sure everyone that works at blackstone could "bring in LPs"
If you are doing "real work" and truly bringing in scarce LP capital that is valued, in my opinion you should bring it up with your boss and see if you can get a verbal on 1% or 2%. After all, you are putting your reputation on the line for that LP to come in and what's the upside if you bring it in otherwise. Its actually only downside, so you might as well get comp'd for it.
Also, GEEK-O, why would a McDonalds store manager have this conversation with you??? Is holding a sign outside a store truly bringing in business. McDonalds already has a strong brand and those patrons would have come in anyway.
BBMM - I'm pretty sure the OP opened with "...we are in the process of fundraising" therefore I would assume they are looking for capital.
Gekko is spot on, silver banana for you
I recently did this. I would recommend talking to your boss first and say "I have a potential LP, this is who it is, I think they would be interested bc ____. Would you like me to set up a meeting and/or send out our marketing material?".
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