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!

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Comments (2)

Mar 9, 2008 - 7:08pm

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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