A friend who works at a PE firm (that's fundraising) is asking me for an intro to another friend at a large LP. Considering this is not a personal intro (ie to get a job or what have you), am I still expected to make the intro for free, or is it reasonable to be paid at least something if the two parties end up doing a deal?
I wouldn't expect a fee if I were introducing a friend raising money for their startup (since they need every penny of what they raise and are small), but I don't feel I should be doing favors for funds for free. Again, I realize I'm helping out a friend, but I'm really helping their fund and by extension, my friend.
Pay it forward. I have given competitors and not millions in referrals and passed on LPs. You get it back via proprietary deal flow, job offers, a good reputation, and much more. Don't ask for a fee, just be good natured.
Totally get your perspective, but suppose I was the friend asking for the intro and posting here to ask whether I should compensate my friend as a courtesy for making an intro. Would you also then say I shouldn't / don't have to, or would you say that it's only right that I do?
I don't work in PE myself, which is why I feel I won't realize the benefits you mentioned (deal flow, job offers, etc). I just happen to have gone to school with both (different schools).
Free
Make the intro for free. It is fine to mention a finders fee in a joking, inoffensive way that floats the idea that a finders' fee would be appreciated if it amounts to anything but makes it clear it is not expected or the reason you are doing the favor.
So I used to work at a firm where our MD would demand that any deal tip-offs or referrals got monetized. Long story short, the firm developed a bad reputation and left a sour taste in a lot of people's mouths.
You should demand compensation. Lol... in this industry people will take something from you and never recognize you afterwards.
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