Introduced an LP to fund
I introduced an LP to my fund that eventually ended up investing a meaningful amount (was a personal/family connection). Should I ask for any kind of compensation in return?
Trending Content - Private Equity Forum
Career Resources
lmao, no
Could you elaborate? We're a first time fund and this LP contributed about 10% of the fund. Not disagreeing, just genuinely curious
Agreed with the comments below. Don't be afraid to speak up about it in the future (i.e., comment to a partner that you grabbed lunch with him, etc because 10% of the Fund is a substantial amount. Prior to your bonus conversation, assuming you're crushing it on your workload, be vocal about how else you can contribute and what else you can do to add value to the firm. Getting a few bps of carry would be good faith on their end. Maybe revisit if the fund does well and the LP decides to increase their position.
Because that's not how it works. This isn't where you get a free gift card for referring someone to your gym. You might potentially receive some additional bonus comp but bringing it up directly would be super awkward. If anything, depending on how big your firm is and the fund itself, you could argue about getting carry - not sure how much experience you have to make a valid argument on why you should get carry or a higher percentage of it.
I’d be happy with additional carry. I’m an associate. From my perspective, they were struggling to raise and this allocation help them close the round. It also wasn’t an institutional investor, it was an individual I personally knew. But this is helpful - feels like in the future the smarter thing is not to volunteer anything
How about a pat on the back?
I think you're quite short-sighted here. You're an associate at a first-time fund. 2024 was one of the worst fundraising environments. You connected a HNWI to your fund and they invested, this at the bare minimum showcases that you cared enough about helping your firm. While it may not offer any material cash in the moment, it could help you in the long-run. This is where private equity politics comes into play.
Aut sed magnam id at. Excepturi hic quae est aut. Fugiat commodi velit ea earum veritatis eveniet.
Tenetur fuga saepe alias nemo. Et soluta possimus perspiciatis distinctio eius animi et. Nihil laborum possimus est sed.
Sunt placeat in assumenda corrupti atque. Aut cum et exercitationem eius. Est neque earum ducimus tempore suscipit ut.
Praesentium quam ut ut ratione sit dolorem et. Necessitatibus sit voluptas numquam ex ratione. Ducimus quod excepturi nihil voluptate sed. Vero commodi et ex.
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...