How much should someone who brings investors get?

by a searcher

3 years ago

I have someone interested in our search, that seems to have reputation and experience in raising money for real estate (not the industry im searching in). He believes he can raise a lot more than I'm looking for allowing multiple acquisitions (which is my goal).  Is there any type of typical range of compensation or equity for someone who brings investors on a deal? 

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searcher from The University of Michigan - Stephen M. Ross School of Business

As others have mentioned, it is likely quite variable. But another factor to consider is what other value is being added, is the person helping source investments going to be on your board, investing their own money, providing advice, etc? There could be other significant advantages, particularly if they take on a broader advisory role.

3 years ago | like reply | 1 like

searcher from Massachusetts Institute of Technology - MIT Sloan School of Management

It can be anywhere between 1-5% in private markets in my experience, often using a Lehman Scale type of structure.

3 years ago | like reply | 1 like

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