Co-GP slice for making introductions, is that a real role or a wrapper

Smaller version of this out in the markets I look at. $600k raises on 12 unit buildings, and the pitch is one point of the raise for bringing a friend in, paid at closing. Nobody calls it co-GP, they call it a "finder fee," which I gather is the part that gets people in trouble. Your version at least has the promote sitting behind performance, so you'd get paid last instead of first.

When I get a deck with three names in the GP box I ask for the GP-level operating agreement, not the LP one. That's the document that shows who has removal rights, who signs the loan, who approves a capital call, and where the promote splits. Two sponsors have refused to send it, which told me what I needed. Whether an introduction-only arrangement is permissible depends on how securities law applies to the specific facts, and that's a question for a securities attorney rather than a forum. What I care about as an LP is whether 30% of the promote is coming out of the operator's incentive or being added on top of my fee load.

Giving away 30% of the promote doesn't move the deal's IRR by a basis point, and it does change who is awake at 2am when a rate cap renewal quote comes back at $600k. Plumb, the question I'd put back to the sponsor is who funds a shortfall. If the operator is on the hook for a DSCR cure and you're not, they're keeping 70% of a promote while carrying 100% of the pain, and that's usually the point where they come back and renegotiate your slice. Has anyone seen a co-GP agreement where the introducing party is required to fund pro rata on a capital call?