Hi, I'm managing Separately Managed Accounts for high net worths / corporate clients and have an associate who has expressed an interest in raising further funds from new investors to invest in my accounts... My question: what is the typical fee compensation structure for seed capital raisers? It's my desire to keep my associate motivated in raising further capital, however I wish to retain full ownership and control of my company... Is compensation typically a one off % of funds raised? If so, what would be a reasonable amount to pay, and what would be a normal holding period before payment is released? I'm very interested to learn how others deal with capital introduction fee structures and any other issues that I have may overlooked. Many thanks for any replies. Best regards Ridu
had a search on the forum but couldn't find much discussed about this... can anyone who has any experience with capital allocators please comment on the normal fee / incentive structure? Is a one off % the seed captial sufficient, or do they normally expect longer term renumeration? Any ideas on how best to approach this much appreciated many thanks Ridu
Google Trailer Fee. http://www.investopedia.com/terms/t/trailerfee.asp Its used by mutual and hedge funds. Usually its a fraction of 1% paid quarterly or yearly.
standard is 20% of what the fund earns. Plus it's paid yearly generally at the end of the calender year after performance is calculated Surf
I think you misunderstood him. He is asking about how salesmen that raise or introduce capital for him should be compensated.
no, that is exactly what I answered. however, i should have made clear standard is 20% of what the fund earns to the person on the capital introduced by that person. i thought that was a given, but just in case it isnt regards, surf
better yet www.albournevillage.com cant get any cheaper than free....plus its a great source shhhh, don't tell anyone! surf