Negotiation of Terms, as a new Hedge Fund Marketer. What to ask for?
Hi all, I recently landed myself a marketing and sales position with a small global macro fund in Asia. Despite its size (BB.
As you can see, my qualifications are lacking, but I learn quickly, and I think I can succeed in raising some money for the fund. I can find very little information online pertaining to my situation, and as such I seek your kind input on the following questions so I can make him a fair offer:
1) What is a reasonable amount of money to raise in a year? I have a few personal HNWI contacts (averaging $5MM in net worth), and I'm planning to reach out to them, and then their friends, and friends of those friends... Is this a workable strategy?
2) I read that private placement agents are usually compensated 2~3% on capital raised. (I looked at private placement agents rather than third-party marketers because I don't provide any marketing services.) Is it realistic to ask for the same? Given my unique situation, should I be asking for more or less than that? Or should I be asking for a base salary, plus a less generous commission?
3) Should I ask for an expense account so that I may have more success converting investors? What is a reasonable amount to ask for?
4) What other considerations are there in a private placement-hedge fund agreement? I know that some of them include investors increasing their investment sizes, investors referring other investors... But is there a time limit on how long after my last contact with these investors that these changes in investment sizes can be credited to me?
5) Any other advice or considerations that I may have missed out and that you may care to give.
Thank you.
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