Head of Business Development

cooltraderabhi · Jun 6, 2012

Hello,

I am looking to hire someone who could head the business development team and help raise $$$ for a start up CTA.

Please let me know if you know any good people and generally what the payouts are in the industry.

mr double · Jun 6, 2012

not interested,see ya

1245 · Jun 7, 2012

Rather than hire someone, if your returns are good, use a third party marketer. They will only get paid if they raise money, no salary and benefits.

cooltraderabhi · Jun 7, 2012

Do you know whats the payout for a third party marketer?

Any good one you would recommend.

WinstonTJ · Jun 7, 2012

Quote from cooltraderabhi:

Do you know whats the payout for a third party marketer?

Any good one you would recommend.

They usually make between 10% and 20% of the capital they raise. It can be negotiable and depends on how much you need to raise.

For example of "negotiable" they could get 15% of anything raised initially up to $5million and then on $5-$20M they only get 8%.

In my experience with guys/gals like this you get what you pay for so don't be scared of the fees. Oh and you (the fund) do not pay the fees, the investor would cut two checks. If the fee is 10% on $1M the investor would cut a check (wire) to the fund for $900k and the second for $100k to the fundraiser.

1245 · Jun 7, 2012

Quote from cooltraderabhi:

Do you know whats the payout for a third party marketer?

Any good one you would recommend.

Typical is 20% on your fee structure. Some times forever sometimes for a limited time. Remember, if these guys are good, they control the money flow. You want to give then what they want with in reason to help your business grow. Money attracts money.

newwurldmn · Jun 7, 2012

Quote from WinstonTJ:

They usually make between 10% and 20% of the capital they raise. It can be negotiable and depends on how much you need to raise.

For example of "negotiable" they could get 15% of anything raised initially up to $5million and then on $5-$20M they only get 8%.

In my experience with guys/gals like this you get what you pay for so don't be scared of the fees. Oh and you (the fund) do not pay the fees, the investor would cut two checks. If the fee is 10% on $1M the investor would cut a check (wire) to the fund for $900k and the second for $100k to the fundraiser.

Seems odd that the investor would be paying a fund raiser - especially in a world where any qualified investor is inundated with pitchbooks. It's like a buyer of a house paying the realtor fee.
I have no experience with this aspect of the business.

1245 · Jun 7, 2012

Quote from newwurldmn:

Seems odd that the investor would be paying a fund raiser - especially in a world where any qualified investor is inundated with pitchbooks. It's like a buyer of a house paying the realtor fee.
I have no experience with this aspect of the business.

The investor pays the same fees. The RIA/CTA shares his fees with the third party marketer that helped bring in the money. This is VERY common.

newwurldmn · Jun 7, 2012

Quote from 1245:

The investor pays the same fees. The RIA/CTA shares his fees with the third party marketer that helped bring in the money. This is VERY common.

So the investor puts in a million. He gives 10% to the fee raiser and pays the hf fee (say 2 and 20) on 900k. The hedgefunder gives the fundraiser a part of that 2 and 20 as well?

I always thought the investor puts a million in. He pays the hf fee. The hedgefunder gives the fundraiser part of the 2 and 20. So the hedgefunder may get 1 and 15 and the fundraiser gets 1 and 5. Making up numbers here.

1245 · Jun 7, 2012

Quote from newwurldmn:

So the investor puts in a million. He gives 10% to the fee raiser and pays the hf fee (say 2 and 20) on 900k. The hedgefunder gives the fundraiser a part of that 2 and 20 as well?

I always thought the investor puts a million in. He pays the hf fee. The hedgefunder gives the fundraiser part of the 2 and 20. So the hedgefunder may get 1 and 15 and the fundraiser gets 1 and 5. Making up numbers here.

EG. CTA charges 2/20. on $1M investment with $100K profits after 2%

2% yearly fee= $20K , $4k to the 3rd party marketer
$100K profit * 20%= $20K, $4K to the marketer.

He gets 20% of what your get. The investor still has his $1M plus profits minus fees in the account.