Standards for charging carry (ie 10%) on a deal opportunity?

searcher profile

December 14, 2022

by a searcher from Georgetown University in New York, NY, USA

Hi, I'm looking at investing in a business and filling out the rest of their round with others. What are the current standards for charging carry (let's say 10%) on that SPV? I will be somewhat active in helping the business grow (though not in a day to day capacity).

Do most people charge carry for bringing opportunities to others like this? I would think 2 and 20 might be a bit high so thinking of doing just a 10% carry.

Any guidance on what is standard here is helpful, thank you!

0
1
73
Replies
1
commentor profile
Reply by a searcher
in New York, NY, USA
personally i wouldn't want to pay carry to someone not too involved. who is going to run the business? maybe you could get a small piece for bringing together the deal but an investor wants to person in the day to day to be incentivized. ideally both on the downside through an equity investment and the upside through carry
Join the discussion