Brought in a $100mm investor – what next?

Brought in a $100mm investor – what’s next?

I am seeking some advice on a recent development in my role at a large PE fund. A contact I had at a pension fund recently invested $100mm with our fund after 8 months of due diligence and may potentially invest more in the future.

Colleagues have mentioned that members of the sales or business development team who bring in such a significant investment typically receive a substantial bonus, possibly in the six figures. However, as a member of the middle office team, my usual bonus is around 50%. I want to ensure I am fairly compensated for my contribution and not overlooked.

I have a couple of questions:

A) For those with similar experiences, what is a realistic bonus or fee I could expect for bringing in this client?

B) How should I approach this situation and assert that I believe I should receive a referral bonus for my role in securing this investor?

Any advice would be greatly appreciated. Thank you.

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One response

  1. Answer:

    Congratulations on bringing in such a significant investor! It’s understandable that you want to ensure you are fairly compensated for your contribution. Here are some steps you can take to navigate this situation:

    A) Realistic Bonus Expectations:

    • It’s true that members of the sales/business development team often receive substantial bonuses for bringing in large investors. However, as you are part of the middle office team, your bonus structure may be different.
    • To set realistic expectations, consider factors such as the size of the investor, the impact on the fund, and the policies of your organization regarding referral bonuses.
    • Research industry standards and speak to colleagues who may have similar experiences to get an idea of what you could potentially expect.

    B) Approach the Topic:

    1. Document your Contribution: Make a list of the specific ways you contributed to bringing in the investor. This could include arranging meetings, providing information, or assisting with due diligence.
    2. Schedule a Meeting: Request a meeting with your manager or HR to discuss your role in securing the $100mm investment. Be prepared to present your documented contributions.
    3. Highlight Value: Emphasize the value that your efforts added to the fund and how it aligns with the organization’s goals. Show how your work went above and beyond your regular responsibilities.
    4. Negotiate: Be open to negotiation and discuss potential bonus structures that you believe are fair based on your contribution. This could be a one-time bonus or a percentage of the investment amount.

    In summary, it’s important to advocate for yourself and communicate your value effectively. By approaching the situation professionally and highlighting your contributions, you increase your chances of receiving a fair bonus for bringing in the $100mm investor. Good luck!

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