Fee for setting up a big established GP with $250Mn in equity?

[Craig Dobson]

So theres a GP who’s done about $2B of deals and I want to help them expand in Texas, and find my friends fund a good investment.

The GP is putting $200m equity to work a year roughly, so they are doing well w raising money, but they are def still interested in taking on additional funds and making deals.

I have done a lot of market research and put together a ppt to pitch their investments and am going to set them up on a call with the LP.

If the call goes well, myself and the GP need to work out a means of compensation for myself. I was thinking to ask for roughly 7.5% of the GP.

So if $250m earned $250m in profits over 7 years, and the LP walks away with $200m of it and the GP gets $50m, I’d walk away with $3.75M.

It seems like a pretty reasonable ask for raising that type of money. Given they raise a lot already, they have negotiating power, so I wouldn’t want to push for more than 10% of the GP, but maybe that’s fair? It would still mean $45M to them.

What do you think? Ive done some smaller stuff where I’ve taken 20%, but that’s with a smaller GP where I was delivering a big value they couldn’t otherwise find.