Definition
Syndicate Lead
The person who sources a deal, sets its terms, and brings their investor group into it.
A syndicate lead sources the allocation, does the diligence, negotiates or accepts the terms, forms the vehicle, and manages the relationship with both the company and the investors who follow them in. Their economics are usually carried interest on each SPV, with 20% the convention, sometimes alongside a facilitation fee to cover the work of assembling the deal. The role carries real obligations: the lead is the manager of a manager-managed vehicle, signs on behalf of every member, and holds the information rights the members do not. Leads who build a durable investor community rather than rebuilding a distribution list each deal compound their access, because founders increasingly select for leads who can close quickly and quietly.