Remuneration for Seed Capital Providers

Discussion in 'Professional Trading' started by Ridu, Oct 27, 2008.

  1. Ridu

    Ridu

    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
     
  2. Ridu

    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
     
  3. Arjun1

    Arjun1

  4. 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
     
  5. Arjun1

    Arjun1

    I think you misunderstood him. He is asking about how salesmen that raise or introduce capital for him should be compensated.
     

  6. 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
     
  7. maybe you should scrap up enough cash and join hedgeworld or something
     
  8. better yet

    www.albournevillage.com

    cant get any cheaper than free....plus its a great source

    shhhh, don't tell anyone!

    surf:D
     
  9. I have an attrective proposal for capital raisers(SMA investing).
    Can you advise anybody of them?