A Deal Partner is an individual within a General Partner’s (GP) or Fund Lead’s existing network who provides meaningful assistance in identifying, assessing, and negotiating fund investments. Their contributions go beyond simple introductions or sourcing LPs—they must play an active role in the investment process.
Responsibilities of a Deal Partner
A Deal Partner should perform the following tasks:
- Identify the portfolio company.
- Assist in investment evaluation, including understanding the business model, assessing risks, and evaluating share prices.
- Help negotiate investment terms.
- Support post-closing actions.
- Monitor the investment, including assistance with follow-on investments.
Deal Partners should not be used to:
- Compensate individuals solely for introductions to founders or sourcing LPs.
- Pay for services unrelated to investing (e.g., accountants, lawyers, or personal services).
- Offer gifts to friends or family members.
GPs may not publicly offer carry to anyone who can identify investments or make introductions—including on platforms like X. Additionally, if Deal Partners are not providing bona fide advisory services to GPs but are instead just making introductions or sourcing LPs, regulators could determine that such Deal Partners are acting as unregistered broker-dealers. This could result in serious fines and reputational damage for the respective GP.