The Question No One Can Answer...

I have posted this question before and have been trying to research this topic for some time without much success:

It rarely happens that analysts or associates source deals to their banks, but when they do, I have heard it is typical for that banker to be given a finders fee around 5% of fees. I have been ably to confirm that both Citi and Dresner have policies for finder's fees.

I am looking for more information on this topic. Does your bank have a policy on finder's fees? If so, what is the policy? Any other concerns or thoughts on this issue?

Thank you!

 

1) It happens so rarely that no one really knows.

2) Every bank has a different policy.

I have known Analysts and Associates who have sourced deals before, but they all fell apart or never closed so I do not know what they would have been paid.

In any case, even with 5%, you're unlikely to get a huge payday from sourcing a deal because the fee on any deal a junior banker sources is not going to be high.

One piece of definitive info. I have: some PEs definitely pay a fee to junior guys who source deals. Specifically, I know Audax Group pays Associates $50,000 for sourced deals that close.

 
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