Skip to content
Commercial Real Estate Investing

User Stats

64
Posts
16
Votes
Anders Jax
  • Accountant
16
Votes |
64
Posts

% to pay a dedicated equity raising partner?

Anders Jax
  • Accountant
Posted Feb 17 2019, 09:38

So if my firm hired someone to raise equity for us, and of course they wanted compensation based mainly on how much equity they could raise us, what would you think is fair breakdown (yes this is legal, I've consulted with a lawyer).

They were proposing 5% of first $5m, 4% of next $5M, and 3% there-after.  And all the relationships that they bring in, they get those same percentages if more money is raised from those contacts, for 3 years after termination or voluntary departure.

What do you think??

Loading replies...