***Am I being compensated fairly?
I have a really interesting BD opportunity that has come up. Basically I am being hired as an outside BD / consultant to source deals for a small start-up fund, they don’t have even have any funds raised yet. It’s a partner in PE and an operator so very small and early stage. Although, they recently closed on a <$5mm TEV business, through a special loan which allows you to buy the business with very low % equity (provided from partner / operator).
For any deal that I source for them and it closes, they would match my investment of x$ for each x$ invested in the business. Is this a normal / market for compensation? again, it’s a really small / start-up operation, without any outside capital received so far. Is it fair that I would need to put up any $ of my own to get equity in a business that closes? Just want to hear some insight from you all.
Bump
At that size, and situation, I don’t think there are enough data points for there to be a “market” comp. It sounds like this is all proprietary sourcing which is hard as fuck, so would expect some sort of success bonus and not just matching your investment. Ultimately up to you if it’s worth it or not. Could help you build a track record of sourcing to move to an established fund, though.
What would a bonus look like you think? And ya I would be reaching out to smaller business brokers and investment banks so not fully proprietary.
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