Associate: Allowed to raise capital (how to leverage for comp)
I’m a first year associate at a small MultiFamily PERE shop. I was told I could raise capital for deals, but how could I leverage this for compensation (without being unethical)?
Raise capital from family and friends and take a small percentage off return?
Ex. Raise $1M -Instead of 8% pref, offer 7.5% pref (take the .5%) -On the 30/70 split offer 25/75 split? (Take the 5% or some type of haircut)?
Any creative/ethical ways I can leverage raising capital in a junior position?
standard way is create an LLC then make your own JV, within that JV.
Thoughts on how to structure it (returns/payouts/etc.)?
yeah, don't scalp your friends and family. Do Pari Passu until a capital event then promote yourself based on equity multiple. Makes the accounting super easy.
saved for later, great idea
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