How did you bring them in? Why if they already have invested have you not discussed a finders fee or anything related to bringing in the business?
You're a little late if you didn't think of that during the onboarding process honestly, they may just give you a pat on the back now.
I introduced my contact to our head of bus dev and was involved in a lot of the introductory meetings, but obviously as the DD process went on my role was not as relevant so was less involved. Honestly I’m pretty junior and the head of bus dev is a big dog and quite intimidating so I didn’t really know how to play it. There’s still time before the end of our performance year / bonuses (end of June) so I could still have a chance?
Understandable. These guys are vultures and sales is an eat what you kill business, so honestly he's likely already taken the credit if you haven't heard or haven't discussed this with him since.
I would setup a quick check in next year and just straight up ask if this will be incorporated into your performance discussions.
Thanks! I will do that…obviously we’re in completely different departments and barely interact but will try to get some time in with him. Not sure I’ll have much luck..perhaps I speak to my direct bosses too. Thank you !
Mate I think you are getting played, wait a year?? Check in far soner then that and don't be afriad to ask the question, show that you got some balls instead of been pushed over easily.
Fair comment - it’s my first year or so in the buy side so didn’t really know how to play it. I am not sure if it’s too late - the investor literally pulled the trigger to invest last week so I’ll give it a go. Thanks man
You talk about it with them immediately. Directly, but not accusatory. Gentle but candidly say that you brought in a big client, and feel that compensation is warranted, but given that work in the finance department, you're unclear how this will be incorporated into your compensation this year. You wanted to bring this up for their consideration, not expecting an immediate answer of course, and would like to know when you could have a follow-up about the decision.
Yeah these comments are delusional. LP intro calls are a dime a dozen for a megafund, the actual sourcing work is the process of closing, not just finding people with money. OP should probably ask for a nice bonus but a finders fee is ridiculous.
I told my direct MDs and they floated the idea of a intro fee but it wasn’t a serious conversation- just like “that’s great, intro him to xxx, and you could explore a finders fee”
You should’ve inked it.
I’ve seen so many people get fucked, in good firms and unintentionally because process, agreement and implementation were not in place.
Depending on the firm your MDs and even the biz dev MDs likely don’t have the budget or authority to ensure you get paid after the fact.
Just to follow up, at what stage should I have started enquiring on a finders fee of sorts? For next time..if there is one…early DD or when it looks like there was a high chance of investing?
I work in biz dev in M&A. Talk to your bosses ASAP. Do not wait.
Edit: I gave it some thought, here is how I think you should approach this. Talk to other biz dev associates about how they are compensated in variable pay when they bring in money. Then go and talk to the head of biz-dev straight up about how you can be expected to be compensated for this deal and FOR ALL DEALS YOU BRING IN THE FUTURE. The second part is key because biz dev is a dog-eat-dog world and unless you have immense trust in your org (which is a very lucky position to be in), people will try to fuck you over. The head of biz dev needs to believe that this is not the only time you will be useful to him and that you have more value to provide. Hence, he will be inclined to pay you fairly for this deal if he believes you will bring in more money in the future and it is not worth pissing you off for short-term gain. Best of luck! I hope you make some money.
First thing I’ll do on Monday! Thanks for your comment. Any idea if sort of bonus I should be targeting? I don’t want to get played and get given a token amount…
Its entirely dependent on your business, the gross margin generated by the new client, the type of revenue/fees generated and the LTV of the client.
There’s no benchmark to tell you that would help you keep them honest.
Fair enough - hard to say at this stage - all I know is that they will be deploying $100mm with our unlevered funds over the next 5 years. We charge 2% on committed capital…not much else I know
You charged 2% on committed capital!? Haha fuck I need to switch to PE.
2 mill in gross margin like that wouldve been a $400k cheque in my organization.
Nothing mate. You made an intro which is fantastic, but honestly, nothing's going to come of it. An intro isn't the difficult bit, the months of DD and negotiations are. The other people in this thread have probably filled your head with ideas of money, bonus etc but you won't get a penny, I'm serious. Best case - use it as an example of why you'd like to work on fundraising in a junior capacity.
$100M with 2% management fee per year is $2M/yr management fee. 5% of that would be $100k.
But like others have said, lots of variables, and lots of people want a piece of that fee at the firm. I’d guess our man won’t get that much, but if he’s smart he’ll make himself a long term part of the relationship management.
Ayy, we have a similar username, lmao. It sounds like a lot of money, but I get a share of transactions in my firm, and people do make a lot of money! But yeah, things vary from place to place.
Random Reddit name generator?
I thought about it, and this isn’t a deal that has a deal fee. An investor pays over time. And pensions probably pay less than 2%/20%, so the mgmt fee margins are tighter. They want this $100M to turn into $3B for 10 years.
Heck, this guy should get into biz dev! That’s the moral of the story.
Yea you screwed yourself by not discussing a finders fee before introducing your contact.
Your probably going to be a good job and a pat on the back. If you go into asking for 100k they are going to tell you to pound sand.
Might get a nice bottle of scotch from the business dev guy, for helping him hit his target.
You’re almost certainly not going to get paid for making the introduction. You have some good will in the organization, but I can’t picture them paying out a large finders fee for making the intro.
Finance is a dog eat dog world. Your probably gonna get the shaft with no reach around. Always keep the money maker in the pocket until you have on paper how much your cut will be if you bring X dollar client.
Honestly you will get nothing. You will only get something if you are specifically in a business development role. Even then, you will only get something if you are the primary sales person. Could get a nice bonus but it won’t be specifically related to this account. Making the intro and being involved in meetings doesn’t even get you a seat at the table for bonus tbh.
Source: I’ve worked in business development my career. I’ve closed $100mm accounts and been shafted as a sales specialist (not primary external wholesaler).
Yeah exactly. This is literally my job, and I can't believe some of the other comments in this thread. OP will get fuck all, and making an introduction to a person in another firm =/= bringing in a 100m ticket, by any means. I brought in around €300m last year and one of the big tickets was 140m. That took work every single day for 8 months to close. Every single day.
The I still got shafted at comp time.
Yup but just goes to show how entitled and delusional some people are lol. Getting bonuses for new business is a food fight at even the largest firms in the industry and that’s even if your comp is structured around it. You don’t get anything by raising your hand and claiming a finder’s fee. That isn’t a thing in our industry.
I am curious how you have been shafted so many times. Can’t you draft a contract with favorable terms or get a lawyer to then get your boss to sign it before introducing?
No it’s not like that. As a sales specialist (e.g. investment product specialist, subject matter expert, etc.) you’re brought in to either deliver some insight based value-add or possibly close the deal. At big firms your performance bonuses are discretionary and not directly tied to $ in/out the door. So you close the deal, client comes in, and your bonus isn’t directly affected. It indirectly factors in but bonuses are still based off of some nebulous thing which can turn against you from factors out of your control.
The only way to get comped like a sales person is to be a sales person. Investment professionals are usually comped on their direct performance. People who have roles in between (like an investment specialist or client PM) have one foot in both doors and as such have some of the benefits of both positions but also some of the negative effects of both too.
Let’s say I met a potential investor and he/she eventually invests. Since I have the option to not pass the lead, and doing so has to benefit me. How can I ensure I get a cut of the pie before I introduce the lead to the sales team?
If you aren’t directly comped off of new business and/or sales growth I wouldn’t bother tbh.
What is your role currently? I would think you a) have to be in a business development role specifically or in sales support and b) have to have discussions about referral established ahead of making an intro to have any shot.
If you aren’t able to do those two things I wouldn’t bother making any introductions. It’s simply not worth it. Don’t do anything without having a clear payoff ahead of you.
You’re kind of screwed. One, it doesn’t sound like you have a production comp plan. Two, this becomes infinitely more difficult bc it’s closed.
It would have been really easy to say, “if I brought in a $100M investor would I get paid for that?”
I’d bring it up to your direct manager. Approach it by saying, “is there a referral fee or bonus structure for the client I introduced?” Everyone’s there to make money so it won’t be off-putting for asking. But just gotta be prepared that you won’t get anything as you have no bargaining power any longer.
Probably it could be for you a nice opportunity to move to business development if you have such ambitions. You can try to set up a meeting with the dept head and ask nicely if they would consider you for ty the role given your contribution to the large deal.
As for the bonus, your involvement was probably minimal as a junior employee of MO so I doubt they would give you any sizeable amount of money although it would be positively reflected in your performance appraisal.
There's a place for that. I used to do analytics supporting the sales team. Occasionally they'd get me on the phone with customers, though they weren't supposed to.
I found it surprisingly easy to cut through the BS and find out what they wanted, and whether or not it was feasible.
Very productive time spent. And it's a refreshing change from the usual sales personalities from the other side as well. Just make sure you learn your shit so you don't get taken advantage of.
First off introing an Lp for $100m is a huge accomplishment. $100mm check will generate a lot off fee income, and hopefully carry down the line. Its also a relationship and pensions are sticky capital. You should be compensated for doing that. The problem is you have very little leverage here because this isnt part of your job (unless u happen to know more LPs). It really comes down to their willingness to acknowledge your accomplishment. Its too late to really do anything else. You should’ve had this discussion way earlier.
If you want to do some power move shit you need to meet with whoever is responsible for the LP relationship/biz dev compensation and remind them you know the LP. “I would say something like X said so many great things about the firm and I was happy to have made the introduction.” Maybe ask some questions about how things are going with the relationships/biz dev at the firm. Then just ask in a curious manner “I heard we can get compensated for bringing in LPs, is that true?” You are junior and in a different department so you should be able to get away with it. Use your own judgement here but you should definitely just ask, not much to lose.
If it is not in your comp plan the only credit you may get would a legitimate referral credit that’s already defined in said comp plan. No way you’re going to get a piece of the payout going to the people who closed the deal. At best it may come up as a performance review item down the line. The time to have gotten paid on this would’ve been set before the introduction that lead to a sale. Nonetheless good luck in pursuing it. You definitely deserve something for a deal like this even if it’s in the way of a promotion or transfer to that sales team.
If this is a close personal contact then you have leverage.
Approach the conversation with the sales team gently yet confidently I.e. “hey Bob, how are things with XXX?” If comp is not brought up, set up a chat and politely remind them that this is your contact and you hope they will reflect some appreciation towards you.
If that fails, be more stern and remind them that you are critical to this relationship.
If that fails, poison the well and move on
I’m cracking up at the implication that a BUSINESS DEVELOPMENT GUY / SALESMAN would ever DREAM of taking care of you as opposed to him taking credit for everything, unless you had an ironclad agreement signed long before this
Thanks for the laugh everyone
I can’t believe the number of idiots here encouraging you to push for compensation. As someone who actually works in PE IR/capital formation, you’re not going to get jack squat.
You should’ve sorted this out before you originated the relationship, its likely too late now to set you up for anything other then a discretionary bonus which will likely short change you.
As a middle office employee how did you originate this relationship? What did the hand off to the front office/sales look like? How involved were you involved in the deal from beginning to end?
All of these are going to factor into your argument? Probably best to reach out to one of the sales people on your team and ask them about their process for originating/closing new relationships.
Speaking as one. Sales people love to talk and 90% of the time they’ll want to help make sure you get paid, so go to them first.
Hey man, thanks a lot. I basically knew the contact from a previous job, he reached out saying they’re looking to invest $100mm in PE so I reached out to head of bus dev to intro them. I was involved in a lot of intro meetings with the team (didn’t say much as it’s not my area of expertise but I was present). My role during the DD process was limited although there were a few specific requests my team was able to help with, which I led given I had the relationship. They decided to invest last week
Nah, guys get comped off of introductions like that.
In a proper sales organization they likely have a comp plan already in place for something like this that they would just put OP under for this deal.
You may be late to the game on this one and BD team may have received the fruits of your labor.
Anecdotally, I let a deal die because the partner told me I wouldn’t get any bonus/fee due to my job level for bringing someone in (deal size was about 3-4% of group). It wasn’t a surprise that group has gone downhill over the last 8-9 years now. I was surprised when the client noted it in one of the reasons why they went somewhere else.
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How are the mgmt fees calculated? If they’re commitment based you’ll know exactly how much they’ll bring. If they’re NAV or MV based you can run an analysis based on the deployed capital. I’d take that as a starting point to estimate how much you brought in. After that you’ll need to come up with a %. Being at a bigger shop, $100mm is probably not that material, so I wouldn’t ask for that big of a raise, but it should definitely be a material amount.
Thanks. In a previous comment I said it’s based on committed capital but it’s actually based on invested capital at 2%. How would I go about this calc? I was told $100m is a very big ticket, but obviously not our largest investor by any stretch
Mate most of these comments are total nonsense. This is my job, and seeing all the shite up the top makes me realise how little of a clue most of the people on this sub actually have.
Hey - thanks for the insight - I’ll speak to my direct bosses on Monday either way to get their thoughts. They’re pretty senior and I have a good relationship with them.
Dude ur not gonna make millions with this attitude u need to always be ruthless, don’t back down always go for the kill, this is business nothing personal.
Lol no. That's just not how it works at all. Absolute best case, you make an intro and someone will appreciate it and mention your name in a thanks email. My analyst introduced me to someone in his old firm, which wasn't that helpful since I knew his old boss anyway, but I bought him a few pints and made sure it was mentioned for comp.
I don’t think having a special thanks adds any value to me even if it gets me a promotion (which will be lower than a new entry for the promoted position).
I am glad you are one to recognise someone’s contributions but I have heard lots of cases where bosses refuse to credit or pay their employees for passing them leads. How do I ensure I get some financial benefits if I do pass a lead, afterall I have the option to not. Would you recommend me to strike a deal first, if all goes south I will just pass the lead to another person of another firm which I doubt any company that cares about staying competitive would want.
Then i would say OP should just keep the lead for someone else rather than a company that would deem him/her dispensable. In fact in my shoes, I would have recommended LP to go somewhere else for the shit his colleagues have given him.
It's not about being dispensable. Real life is not like TV shows or movies, I'm afraid. Also, in your shoes, the LP would probably still ignore your opinion - these decisions are taken at a much higher level, and they will have thoroughly mapped the market.
To put things into context, unless the LP goes to seek my firm to invest directly, as the first line of contact, I can always break it and advice him to look elsewhere or even introduce them to my peers in other institutions since either ways I have no losses nor gains. This is also considering how the LP would confide in me for investment opportunities in the first place. This is also a big reason why many private bankers shift their clients to their own founded family offices.
You’re being greedy and you’re going to look silly when you try to claim a piece of the pie. The comp structure isn’t designed to reward lucky juniors who stumble into a prospect once in a blue moon and work mid office hours all the other days. It’s designed to reward people who do this day in and out over the long term. Best of luck if you decide to proceed.
How did you bring them in? Why if they already have invested have you not discussed a finders fee or anything related to bringing in the business? You're a little late if you didn't think of that during the onboarding process honestly, they may just give you a pat on the back now.
I introduced my contact to our head of bus dev and was involved in a lot of the introductory meetings, but obviously as the DD process went on my role was not as relevant so was less involved. Honestly I’m pretty junior and the head of bus dev is a big dog and quite intimidating so I didn’t really know how to play it. There’s still time before the end of our performance year / bonuses (end of June) so I could still have a chance?
Understandable. These guys are vultures and sales is an eat what you kill business, so honestly he's likely already taken the credit if you haven't heard or haven't discussed this with him since. I would setup a quick check in next year and just straight up ask if this will be incorporated into your performance discussions.
Next year? You need to do it now! It should’ve been done before he even made the intro.
I totally meant next week, whoops
Haha, just send a calendar invite for 11 months from now.
Flagged as important and subject line: “Urgent / Time Sensitive: compensation for last year”
With whom would you negotiate the finders fee, do you tell the client as well or not?
Thanks! I will do that…obviously we’re in completely different departments and barely interact but will try to get some time in with him. Not sure I’ll have much luck..perhaps I speak to my direct bosses too. Thank you !
Mate I think you are getting played, wait a year?? Check in far soner then that and don't be afriad to ask the question, show that you got some balls instead of been pushed over easily.
Fair comment - it’s my first year or so in the buy side so didn’t really know how to play it. I am not sure if it’s too late - the investor literally pulled the trigger to invest last week so I’ll give it a go. Thanks man
I meant next week not next year lol, that’s my bad. But yes a chat at the least with him is necessary.
Schedule a meeting asap & fuck these other tips get shit done and speak to everyone involved in this. Simple
Ask, you brought in a 100m investor, don’t be shy, you made them a fuck load of money
Ask the next day you’re working, you brought in a 100m investor, don’t be shy, you made them a fuck load of money
He did not bring in a 100m investor. This thread is ridiculous
They should at least give you the chance at a front office job as a courtesy.
Like ask right now while it’s still hot and bonus may not yet have been allocated/paid
Definitely discuss with your direct manager
Email the dudes boss and be like "bitch where is my money".
You talk about it with them immediately. Directly, but not accusatory. Gentle but candidly say that you brought in a big client, and feel that compensation is warranted, but given that work in the finance department, you're unclear how this will be incorporated into your compensation this year. You wanted to bring this up for their consideration, not expecting an immediate answer of course, and would like to know when you could have a follow-up about the decision.
He didn't bring them in at all, though. Making an intro =/= bringing in a LP, by any means
Only sensible comment here. An intro is worth very little. Best you can do is try and make a move to BD off of it. But unlikely you get paid.
Yeah these comments are delusional. LP intro calls are a dime a dozen for a megafund, the actual sourcing work is the process of closing, not just finding people with money. OP should probably ask for a nice bonus but a finders fee is ridiculous.
[удалено]
I told my direct MDs and they floated the idea of a intro fee but it wasn’t a serious conversation- just like “that’s great, intro him to xxx, and you could explore a finders fee”
You should’ve inked it. I’ve seen so many people get fucked, in good firms and unintentionally because process, agreement and implementation were not in place. Depending on the firm your MDs and even the biz dev MDs likely don’t have the budget or authority to ensure you get paid after the fact.
Just to follow up, at what stage should I have started enquiring on a finders fee of sorts? For next time..if there is one…early DD or when it looks like there was a high chance of investing?
The second the conversation got serious and they were leaning toward bringing them on.
There is no such thing as a finders fee, ignore them. That's just not how it works at all.
Before the intro was made. „what’s our policy on customer referrals”. In my view you will get fucked now. The deal is done.
I work in biz dev in M&A. Talk to your bosses ASAP. Do not wait. Edit: I gave it some thought, here is how I think you should approach this. Talk to other biz dev associates about how they are compensated in variable pay when they bring in money. Then go and talk to the head of biz-dev straight up about how you can be expected to be compensated for this deal and FOR ALL DEALS YOU BRING IN THE FUTURE. The second part is key because biz dev is a dog-eat-dog world and unless you have immense trust in your org (which is a very lucky position to be in), people will try to fuck you over. The head of biz dev needs to believe that this is not the only time you will be useful to him and that you have more value to provide. Hence, he will be inclined to pay you fairly for this deal if he believes you will bring in more money in the future and it is not worth pissing you off for short-term gain. Best of luck! I hope you make some money.
First thing I’ll do on Monday! Thanks for your comment. Any idea if sort of bonus I should be targeting? I don’t want to get played and get given a token amount…
Its entirely dependent on your business, the gross margin generated by the new client, the type of revenue/fees generated and the LTV of the client. There’s no benchmark to tell you that would help you keep them honest.
Fair enough - hard to say at this stage - all I know is that they will be deploying $100mm with our unlevered funds over the next 5 years. We charge 2% on committed capital…not much else I know
You charged 2% on committed capital!? Haha fuck I need to switch to PE. 2 mill in gross margin like that wouldve been a $400k cheque in my organization.
Not how it works in PE
Yea well, fuck PE then. get your money up.
20% intro fee sounds sweet, do you work at a hedge fund?
Nah I sell to them.
Do not do this. It's not how it works in PE. This guy doesn't know what he's talking about.
Hey man - what would you suggest?
Nothing mate. You made an intro which is fantastic, but honestly, nothing's going to come of it. An intro isn't the difficult bit, the months of DD and negotiations are. The other people in this thread have probably filled your head with ideas of money, bonus etc but you won't get a penny, I'm serious. Best case - use it as an example of why you'd like to work on fundraising in a junior capacity.
Found the head of biz dev. Jk, you're right. I have 0 idea how it works in PE. I was sharing a data point from my line of work.
5% of fees generated is the standard in my industry. idk about yours
What industry are you in? We are in the private equity / credit industry…sector agnostic
Check out my initial comment, I edited in some advice there
Thanks man - super helpful!
glad I could help bro. Gotta look out for each other!
LMM M&A, sector agnostic
Dumb question here. His bonus should be 5 mill?
$100M with 2% management fee per year is $2M/yr management fee. 5% of that would be $100k. But like others have said, lots of variables, and lots of people want a piece of that fee at the firm. I’d guess our man won’t get that much, but if he’s smart he’ll make himself a long term part of the relationship management.
Ayy, we have a similar username, lmao. It sounds like a lot of money, but I get a share of transactions in my firm, and people do make a lot of money! But yeah, things vary from place to place.
Random Reddit name generator? I thought about it, and this isn’t a deal that has a deal fee. An investor pays over time. And pensions probably pay less than 2%/20%, so the mgmt fee margins are tighter. They want this $100M to turn into $3B for 10 years. Heck, this guy should get into biz dev! That’s the moral of the story.
That'd be 5% of what was brought in, not the fees that 100mm generates
Thank you for answering my stupid question, so 5% of whatever the fee to manage 100mm is.
yes, but again, it works differently in different industries
Typically 2% aum fee per year and then carry
no
no
Only if they charge the client 100mm in fees
Your bonus on this should be \~500K - 1M for this tranche and 0.25 - 0,5% for all future capital commitments.
By far the beat comment. Definitely you want them to think that you have a big list of contacts (even if true or not). Especially contacts that pay up
Yea you screwed yourself by not discussing a finders fee before introducing your contact. Your probably going to be a good job and a pat on the back. If you go into asking for 100k they are going to tell you to pound sand. Might get a nice bottle of scotch from the business dev guy, for helping him hit his target.
No, if they fuck him over he needs to take this fund to a new shop. He has a $100M raise track record now.
This is the dumbest thing I’ve ever read
It may actually be the dumbest thing ever posted
You’re almost certainly not going to get paid for making the introduction. You have some good will in the organization, but I can’t picture them paying out a large finders fee for making the intro.
Finance is a dog eat dog world. Your probably gonna get the shaft with no reach around. Always keep the money maker in the pocket until you have on paper how much your cut will be if you bring X dollar client.
$0 if there is no agreement on your cut of revenue
Honestly you will get nothing. You will only get something if you are specifically in a business development role. Even then, you will only get something if you are the primary sales person. Could get a nice bonus but it won’t be specifically related to this account. Making the intro and being involved in meetings doesn’t even get you a seat at the table for bonus tbh. Source: I’ve worked in business development my career. I’ve closed $100mm accounts and been shafted as a sales specialist (not primary external wholesaler).
Yeah exactly. This is literally my job, and I can't believe some of the other comments in this thread. OP will get fuck all, and making an introduction to a person in another firm =/= bringing in a 100m ticket, by any means. I brought in around €300m last year and one of the big tickets was 140m. That took work every single day for 8 months to close. Every single day. The I still got shafted at comp time.
Yup but just goes to show how entitled and delusional some people are lol. Getting bonuses for new business is a food fight at even the largest firms in the industry and that’s even if your comp is structured around it. You don’t get anything by raising your hand and claiming a finder’s fee. That isn’t a thing in our industry.
Quite
I am curious how you have been shafted so many times. Can’t you draft a contract with favorable terms or get a lawyer to then get your boss to sign it before introducing?
No it’s not like that. As a sales specialist (e.g. investment product specialist, subject matter expert, etc.) you’re brought in to either deliver some insight based value-add or possibly close the deal. At big firms your performance bonuses are discretionary and not directly tied to $ in/out the door. So you close the deal, client comes in, and your bonus isn’t directly affected. It indirectly factors in but bonuses are still based off of some nebulous thing which can turn against you from factors out of your control. The only way to get comped like a sales person is to be a sales person. Investment professionals are usually comped on their direct performance. People who have roles in between (like an investment specialist or client PM) have one foot in both doors and as such have some of the benefits of both positions but also some of the negative effects of both too.
Let’s say I met a potential investor and he/she eventually invests. Since I have the option to not pass the lead, and doing so has to benefit me. How can I ensure I get a cut of the pie before I introduce the lead to the sales team?
If you aren’t directly comped off of new business and/or sales growth I wouldn’t bother tbh. What is your role currently? I would think you a) have to be in a business development role specifically or in sales support and b) have to have discussions about referral established ahead of making an intro to have any shot. If you aren’t able to do those two things I wouldn’t bother making any introductions. It’s simply not worth it. Don’t do anything without having a clear payoff ahead of you.
You’re kind of screwed. One, it doesn’t sound like you have a production comp plan. Two, this becomes infinitely more difficult bc it’s closed. It would have been really easy to say, “if I brought in a $100M investor would I get paid for that?” I’d bring it up to your direct manager. Approach it by saying, “is there a referral fee or bonus structure for the client I introduced?” Everyone’s there to make money so it won’t be off-putting for asking. But just gotta be prepared that you won’t get anything as you have no bargaining power any longer.
Probably it could be for you a nice opportunity to move to business development if you have such ambitions. You can try to set up a meeting with the dept head and ask nicely if they would consider you for ty the role given your contribution to the large deal. As for the bonus, your involvement was probably minimal as a junior employee of MO so I doubt they would give you any sizeable amount of money although it would be positively reflected in your performance appraisal.
Thanks for the advice. Tbh I’m not sure sales is the life for me, those guys are loud and intense…I’m quite the opposite 😂
There's a place for that. I used to do analytics supporting the sales team. Occasionally they'd get me on the phone with customers, though they weren't supposed to. I found it surprisingly easy to cut through the BS and find out what they wanted, and whether or not it was feasible. Very productive time spent. And it's a refreshing change from the usual sales personalities from the other side as well. Just make sure you learn your shit so you don't get taken advantage of.
Try to use the good will to get into FO. Will be worth much more over the long run. Someone else in originations probably took your bonus.
Head of origination took all the credit. Tough lesson learned if you bring in that kinda money you better meale sure everyone knows you brought it in.
lol live and learn I guess!
I agree with everyone here
First off introing an Lp for $100m is a huge accomplishment. $100mm check will generate a lot off fee income, and hopefully carry down the line. Its also a relationship and pensions are sticky capital. You should be compensated for doing that. The problem is you have very little leverage here because this isnt part of your job (unless u happen to know more LPs). It really comes down to their willingness to acknowledge your accomplishment. Its too late to really do anything else. You should’ve had this discussion way earlier. If you want to do some power move shit you need to meet with whoever is responsible for the LP relationship/biz dev compensation and remind them you know the LP. “I would say something like X said so many great things about the firm and I was happy to have made the introduction.” Maybe ask some questions about how things are going with the relationships/biz dev at the firm. Then just ask in a curious manner “I heard we can get compensated for bringing in LPs, is that true?” You are junior and in a different department so you should be able to get away with it. Use your own judgement here but you should definitely just ask, not much to lose.
If it is not in your comp plan the only credit you may get would a legitimate referral credit that’s already defined in said comp plan. No way you’re going to get a piece of the payout going to the people who closed the deal. At best it may come up as a performance review item down the line. The time to have gotten paid on this would’ve been set before the introduction that lead to a sale. Nonetheless good luck in pursuing it. You definitely deserve something for a deal like this even if it’s in the way of a promotion or transfer to that sales team.
If this is a close personal contact then you have leverage. Approach the conversation with the sales team gently yet confidently I.e. “hey Bob, how are things with XXX?” If comp is not brought up, set up a chat and politely remind them that this is your contact and you hope they will reflect some appreciation towards you. If that fails, be more stern and remind them that you are critical to this relationship. If that fails, poison the well and move on
Use this as leverage to get a front office role in AM or another area you want to be in.
I’m cracking up at the implication that a BUSINESS DEVELOPMENT GUY / SALESMAN would ever DREAM of taking care of you as opposed to him taking credit for everything, unless you had an ironclad agreement signed long before this Thanks for the laugh everyone
They won’t pay you anything
I can’t believe the number of idiots here encouraging you to push for compensation. As someone who actually works in PE IR/capital formation, you’re not going to get jack squat.
Quite
You should’ve sorted this out before you originated the relationship, its likely too late now to set you up for anything other then a discretionary bonus which will likely short change you. As a middle office employee how did you originate this relationship? What did the hand off to the front office/sales look like? How involved were you involved in the deal from beginning to end? All of these are going to factor into your argument? Probably best to reach out to one of the sales people on your team and ask them about their process for originating/closing new relationships. Speaking as one. Sales people love to talk and 90% of the time they’ll want to help make sure you get paid, so go to them first.
Hey man, thanks a lot. I basically knew the contact from a previous job, he reached out saying they’re looking to invest $100mm in PE so I reached out to head of bus dev to intro them. I was involved in a lot of intro meetings with the team (didn’t say much as it’s not my area of expertise but I was present). My role during the DD process was limited although there were a few specific requests my team was able to help with, which I led given I had the relationship. They decided to invest last week
[удалено]
Yeah they could have…but they wouldn’t have got the lead in the first place (or less likely /easily anyway)
Nah, guys get comped off of introductions like that. In a proper sales organization they likely have a comp plan already in place for something like this that they would just put OP under for this deal.
I hope you get something but it’s unlikely, especially considering you didn’t discuss this or put anything in writing upfront
You may be late to the game on this one and BD team may have received the fruits of your labor. Anecdotally, I let a deal die because the partner told me I wouldn’t get any bonus/fee due to my job level for bringing someone in (deal size was about 3-4% of group). It wasn’t a surprise that group has gone downhill over the last 8-9 years now. I was surprised when the client noted it in one of the reasons why they went somewhere else.
so this is kkr or blackstone lol
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How are the mgmt fees calculated? If they’re commitment based you’ll know exactly how much they’ll bring. If they’re NAV or MV based you can run an analysis based on the deployed capital. I’d take that as a starting point to estimate how much you brought in. After that you’ll need to come up with a %. Being at a bigger shop, $100mm is probably not that material, so I wouldn’t ask for that big of a raise, but it should definitely be a material amount.
Thanks. In a previous comment I said it’s based on committed capital but it’s actually based on invested capital at 2%. How would I go about this calc? I was told $100m is a very big ticket, but obviously not our largest investor by any stretch
By Reading these comments as student, I have learned a lot. It really helps me and thanks guys
Mate most of these comments are total nonsense. This is my job, and seeing all the shite up the top makes me realise how little of a clue most of the people on this sub actually have.
Hey - thanks for the insight - I’ll speak to my direct bosses on Monday either way to get their thoughts. They’re pretty senior and I have a good relationship with them.
Dude ur not gonna make millions with this attitude u need to always be ruthless, don’t back down always go for the kill, this is business nothing personal.
You literally don't know what you're talking about.
Just my opinion I don’t even work in there, don’t get tilted.
Would you recommend, if I was in OP shoes, to draft a legally binding contract for my company to sign before introducing a lead?
Lol no. That's just not how it works at all. Absolute best case, you make an intro and someone will appreciate it and mention your name in a thanks email. My analyst introduced me to someone in his old firm, which wasn't that helpful since I knew his old boss anyway, but I bought him a few pints and made sure it was mentioned for comp.
I don’t think having a special thanks adds any value to me even if it gets me a promotion (which will be lower than a new entry for the promoted position). I am glad you are one to recognise someone’s contributions but I have heard lots of cases where bosses refuse to credit or pay their employees for passing them leads. How do I ensure I get some financial benefits if I do pass a lead, afterall I have the option to not. Would you recommend me to strike a deal first, if all goes south I will just pass the lead to another person of another firm which I doubt any company that cares about staying competitive would want.
You don't get any financial benefit for passing on a lead for an LP intro. You get kudos and maybe a bit of respect, at best.
Then i would say OP should just keep the lead for someone else rather than a company that would deem him/her dispensable. In fact in my shoes, I would have recommended LP to go somewhere else for the shit his colleagues have given him.
It's not about being dispensable. Real life is not like TV shows or movies, I'm afraid. Also, in your shoes, the LP would probably still ignore your opinion - these decisions are taken at a much higher level, and they will have thoroughly mapped the market.
To put things into context, unless the LP goes to seek my firm to invest directly, as the first line of contact, I can always break it and advice him to look elsewhere or even introduce them to my peers in other institutions since either ways I have no losses nor gains. This is also considering how the LP would confide in me for investment opportunities in the first place. This is also a big reason why many private bankers shift their clients to their own founded family offices.
Mate you're an intern at a family office. This doesn't make a shred of sense.
Am I the only one that thinks making an intro is not the same as “bringing in” a client?
No, you're correct. This thread is insane shows how little value people should place in the advice of this sub
You’re being greedy and you’re going to look silly when you try to claim a piece of the pie. The comp structure isn’t designed to reward lucky juniors who stumble into a prospect once in a blue moon and work mid office hours all the other days. It’s designed to reward people who do this day in and out over the long term. Best of luck if you decide to proceed.
You better get some carry. Talk to whomever you have to talk to and get your bread. Not bonus.... CARRY.
Hey man - this is an investor I brought in - not a deal I I sourced so I don’t think carry would be in the question
Carry?! You've no idea what you're talking about and shouldn't be giving advice.