Finder’s Fee

A finder's fee is a commission or compensation paid to an individual or intermediary — the 'finder' — who identifies and introduces two parties to a business transaction, deal, or investment opportunity that subsequently closes successfully. Finders fees are common in real estate transactions, mergers and acquisitions, private equity deal sourcing, venture capital introductions, and business brokering — where the finder's role is limited to making the introduction rather than providing advisory or transactional services. The fee is typically expressed as a percentage of the transaction value and is agreed upon in advance through a formal finder's fee agreement. In India, finder's fees must be structured carefully within SEBI's investment advisory and intermediary regulations to ensure compliance and avoid unregistered advisory activity. For investors and investment professionals on Ventura Securities, understanding finder's fee arrangements is relevant in the context of deal origination in private markets, pre-IPO placements, and alternative investment fund sourcing.