How much do private credit lenders pay in origination fees?
Have read a lot about Private credit being in a "golden age" of sorts.
Was curious about building an intelligence platform that could match middle market firms looking for funding, including debt investment with the proper capital providers. It's an idea I have been putting some thought into and got a friend who has about 3 years of commercial banking interested in partnering/co-founding.
Was curious, would lenders be open to paying small origination fees for companies they find & lend to through the platform? What would the correct pricing be? I know a few firms like this exist & they are young + venture backed.
Was thinking of if either charging 80 basis points upfront as the deal closes to the lender or 96 basis points paid monthly, 8 basis points at a time, over the next year assuming the borrower does not default.
Hope that is a good affordable price for them. Curious if family offices that claim on their sites to offer direct lending investments would be interested as well? Obviously private credit funds may be interested, hedge funds, perhaps venture debt funds may also be interested. Hoping I can find some boutique funds interested after building an MVP by mid-late summer.
Hoping the platform could also expand into majority or minority equity investments and be an origination/sourcing resource there as well. Thinking we could pay out a portion of our fee to people that refer good targets onto the platform that get funding, the target's lawyers, consultants, accountants ect.
Open to all thoughts, insights, advise ect.
Lol fuck no
Is the fee too high? Are there some funds that would not be open to it?
Most funds don't struggle to find targets, why should they pay you. Especially ~1/3 of the total fee we get for essential a database.
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