Compensating Fundraisers in a syndication

[Theo Lusardi]

I am trying to understand how to properly compensate team members that raise money for our fund.  Do we break apart the GP Equity for individuals?  Do we offer them percentages on what is raised? I know Cardone is an absolutely massive syndicator but I am want to understand how to continue to compensate the team and have them grow with us.  

Secondly if you have multiple people as part of the overall GP team, how do you determine how to divide up the GP split?  

Any advice would be greatly appreciated.

[Justin Moy]

You can really break this up however you'd like, but generally what I've seen is 1/3 of the GP dedicated to the capital raising. If you're doing a 70/30 split that would mean 10% of the total deal. If the split is 80/20 maybe that changes. 

If there is another GP team coming on to raise for your deal, to me it doesn't matter how many people are on the team, they're getting 1/3 and they can decide how they divide that up among themselves.