How Do Retainer Agreements Work?
Retainers are common in investment banking. They may well be similar to those used in law. Can be creditable or non creditable (i.e. could go towards reducing transaction fees). Structures vary, but the garden variety are flat upfront fees charged to “keep the lights on.” The retainer ensures that the client has an incentive to stay committed to their banker, and the banker gets paid whether or not the deal gets done.
