Remuneration for Seed Capital Providers

R

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
 
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
 
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
 
Quote from marketsurfer:

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
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I think you misunderstood him. He is asking about how salesmen that raise or introduce capital for him should be compensated.
 
Quote from Arjun1:

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