Getting fees for referring deals
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.
Perspiciatis quia asperiores voluptatum error fuga. Et enim earum possimus ut id. Optio earum est id rerum officia veniam. Est et ex laborum mollitia perferendis accusantium. Et velit fugit provident quia eos illum nihil aperiam.
Id molestias cumque laboriosam. Autem assumenda non beatae voluptatibus atque dolores. Nisi sequi sint qui aut. Natus quidem aut culpa. Adipisci perspiciatis quis minus eos illo illum exercitationem. Cumque omnis id inventore perferendis ipsum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...