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Private Equity Finder's Fee Agreement Template for United States

A Private Equity Finder's Fee Agreement is a legal contract governed by U.S. federal and state securities laws that establishes the terms under which a finder will be compensated for introducing potential investors to a private equity opportunity. The agreement details the scope of services, compensation structure, and compliance requirements while addressing SEC and FINRA regulations regarding broker-dealer activities. It includes specific provisions for regulatory compliance, confidentiality, and terms of payment.

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What is a Private Equity Finder's Fee Agreement?

The Private Equity Finder's Fee Agreement is essential when companies or funds seek to raise capital through private equity investments and engage intermediaries to source potential investors. This document, governed by U.S. securities laws, establishes clear parameters for the finder's role, compensation structure, and regulatory compliance obligations. It protects both parties by clearly defining the scope of services, payment terms, and compliance requirements while addressing potential regulatory concerns regarding broker-dealer activities.

What sections should be included in a Private Equity Finder's Fee Agreement?

1. Parties: Identification of the finder and the company/fund seeking investment

2. Background: Context of the agreement and brief description of the parties' intentions

3. Definitions: Key terms used throughout the agreement including 'Qualified Investment', 'Finder's Fee', 'Investor'

4. Services: Detailed description of finder's services and obligations

5. Compensation: Structure and terms of finder's fee payment

6. Term and Termination: Duration of agreement and termination provisions

7. Representations and Warranties: Statements of fact and assurances from both parties

8. Confidentiality: Protection of confidential information

9. Governing Law: Applicable jurisdiction and dispute resolution

What sections are optional to include in a Private Equity Finder's Fee Agreement?

1. Exclusivity: Terms of exclusive arrangement if finder has exclusive rights for specific investors or territories

2. Tail Period: Post-termination period during which finder remains entitled to fees for investments from introduced parties

3. Regulatory Compliance: Specific compliance obligations and requirements for regulated activities

4. Indemnification: Terms of mutual or one-way indemnification for third-party claims

What schedules should be included in a Private Equity Finder's Fee Agreement?

1. Schedule of Qualified Investors: List of potential investors introduced by finder

2. Fee Schedule: Detailed breakdown of fee structure and calculation methodology

3. Services Description: Detailed scope of finder's services

4. Compliance Requirements: Specific regulatory requirements and procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

United States

Document Type

Equity Agreement

Cost

Free to use

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