Sourced Deal, Now What?
I'm a first year associate at a PE shop. While we are lean from the junior level, we are fairly heavy at the top (not that unique of a situation).
My role doesn't explicitly state that I have to source deals. If anything, the VPs and SVPs are in charge of sourcing deals. However, like many firms, "everyone is a deal guy". Fast forward to 8 months into my gig, I have been able to leverage my own network that I've formed over the years and got a bilateral deal in the pipeline that is north of $100 million.
Is it reasonable, once the deal is advanced enough, to ask a senior member about potential $ for having sourced a deal through a bilateral process? Mind you that the firm has not done a single acquisition in the past two years... I get the whole "you'll be top bucket during bonus time" but mind you that the base salary differential between a VP and an associate is different enough where top % bonus at my level isn't all that much.
Thoughts on whether it is appropriate to ask? What are potential backlashes? Anyone with direct experience care to enlighten me on what you did?
I dont think they will pay you anything extra if it is not stated in your contract. They might just give you a higher amount of bonus.
Depends on your shop and how big it is. You should definitely bring it up in your year-end review. This will most likely lead to a higher bonus and probably a higher bump in your base salary as they will "promote" you faster (based on experience in Europe).
Definitely something to bring up more around year-end bonus time. There are so many hurdles to get that deal closed still that it wouldn't make any sense to bring up a sourcing bonus now. Is it even under LOI? or just still in the pipeline?
Its a bilateral deal so we executed NDA, recieved materials to reaffirm vakue and now we are moving it forward with exclusivity for a set yime to close the deal.
Still think I need to bring it up at year end i stead of as we sogn the PSA?
Def something you can bring up but when you exit is when I would start making some noise.
Bump, following
If the deal closes, see what happens during bonus season and bring it up then. Even if it's not explicitly stated in your contract, in my opinion, a good firm will recognize that you sourced the deal and should give you some form of recognition/compensation for it beyond just the usual bonus you would receive.
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