Raising capital as an mid-level employee
I work for a sponsor and we are currently raising fund money. Through my personal connection, we will likely raise $100M+. I am currently an associate. Do I have the right to ask for a % of what I raised on top of my year-end bonus at this level? Without WSO input, I am leaning towards negotiating 10-15 bps.
I'm guessing a brokerage raising this money would easily charge a point.
Any thoughts appreciated, thanks.
I probably would have negotiated that beforehand, but I would absolutely ask, but only when its like 90% chance its going to happen. Don't be shy about it, that's a huge amount of money, they should give you something very generous for it especially as its a very difficult time to raise anything. Just ask for it and say that you may have a couple more connections but want to make sure you are compensated. I was in a similar situation and they agreed to pay me.
How does the fallout look if at 90% line, he asks for 10-15 bps and they say sure (not in writing). Company does not pay them and he goes to the people who invested $100mm saying he got screwed.
How does that work? If the investors are close friends does that cause trouble or companies know this and are willing to give a small % so that doesn't happen.
Also on the 1%, I think for deals of that size on the debt side it's be closer to .5% but to your point your ask is still much lower.
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