Frequently Asked Questions
Back to FAQ'sHow is Lexington compensated for raising money?
In all cases, we tailor a fee structure or other compensation to fit the full scope of a specific assignment and the total fee structure depends upon the varied Financial Advisory Services provided by Lexington.
Our fee arrangements are detailed in every formal engagement agreement and discussed in detail prior to engaging with any client. Although no reputable investment bank will guarantee success, and works on a best-effort basis, as a firm, we make our own engagement decisions based on our responsibility to deliver as promised. Lexington will always seek to increase the value of the proposed transaction far in excess of the advisory fee.
Most sophisticated investment banks, such as Lexington, will utilize a fee structure that aligns the investment bank's incentive with your own. In almost every case, Lexington's fee structure consists of a combination of success fees, warrants and/or derivatives with an initial one-time 'upfront cash advance or retainer' that is credited against the total completion fee. The completion fees are paid at the successful conclusion of a transaction. Lastly, regardless of whether it is equity or debt, Lexington maintains a policy of offering its clients only market-accepted fee structures.
