Capital raisers

New mandates come through warm introductions from property developers, operators, and other capital raisers who specialise in different asset classes. Cold outreach to issuers has a low hit rate; warm introductions through a private network convert at 5x to 10x the rate. Socii is the private network where every mandate referral is documented and tracked.

Two to five percent of equity raised is the standard band for wholesale and sophisticated investor raises. Smaller raises ($2M to $5M) sit at the top of the band; larger raises ($20M+) sit at the bottom. The fee is paid on capital actually drawn, not on commitment. AFSL or authorised representative coverage is required for most raises.

When a third party introduces the investor, the introducer typically takes 25% to 50% of the success fee. Pure cold introductions where the introducer hands over the lead and walks away sit at 25%. Warm introductions where the introducer pre-qualified the investor and stays involved sit at 50%. Document the split in writing before the introduction.

Usually yes, unless operating under a corporate authorised representative arrangement with a licensed entity. Wholesale and sophisticated investor work is lighter-touch but still requires AFSL or AR coverage if you are arranging financial products in the course of business. Most active capital raisers either hold their own AFSL or operate under a licensee.

The introducer agreement is the only reliable protection. A standard 12 to 24 month exclusivity period means any investment by the introduced investor in any related deal pays through the introducer. Without a written agreement, the receiving party has every incentive to claim the relationship was already in their book. Socii documents every investor introduction with an embedded agreement.