Originating $300 million dollar, private equity deal for my HF. What split can I ask for ?

Hello everyone,

A bit of context:

  • I am Part of a new HF with small sized but very experienced people. in Hong Kong

  • We are currently not active in private equity, but we are open to opportunities. Thus no clear framework

  • We had a terrible year in 2018, no bonus. Some senior partners left. But the company is holding on.

  • We don't have a clear rule on deals and fees since we never have done a big one yet. Although some senior partners are experienced from IB, The company is in growth mod and we need to build reputation and a few millions to stay in the black, (not yet fully profitable)

So, I have with a friend of mine, been able to originate a $300m secondary shares of a very hot start up in Asia, and I have brought it to the firm.
By originating i mean: getting an exclusive right on the deal from the shareholder, negotiated a discount (10-20%), worked on the models. the market & competition, the company story and selling points. Created from scratched the entire pitchbook. Preview a possible structuring and legal framework for execution. THEN i introduced to my senior and CIO. It
we have been pitching and got really good feedback from large SWF and HNWI. The partners are very happy too but ...

Here is the problem, I am 24 year old. I am mainly an analyst on global Equity, but i do a lot of marketing and a lot of IR. ( I am not expected to bring deals like that)
I have 2 years of experience, and I am not sure how to negotiate this. I don't want my age to be a prejudice. On top of that, my friend has been able to negotiate with my firm a 50:50 on the fees made from this deal. (with my help)
The original idea was to split with him. However, i fear its not compliant, So I need to ask my mgmt a direct share of the deal myself to be transparent.

What do I do ?
Should I be allowed got get at least 10% of the fees ? is it more ? Am i crazy ?

Thank you

Comments (6)

 
Dec 20, 2019 - 5:58pm

Don't expect to get anything. Partners / MDs / Principals share in economics because such terms are written into their contracts.

Unless you are one of the former, you won't get anything except an outsized bonus (at firm discretion).

If you want to participate in economics on an opportunity that you originated which generated revenue, make sure terms are in writing before checks get cut.

 
Most Helpful
Jan 3, 2020 - 5:04am
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