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Q:"Just remaining a gigantic private company seemed impossible?" A:"You have to go public at some point. The way we were structured and the way we had raised mo
by Radle 8y ago
Q:"Just remaining a gigantic private company seemed impossible?"
A:"You have to go public at some point. The way we were structured and the way we had raised money, we were just engineered so that, if we weren’t going to get acquired, that was the only exit option for us."
Why? Is this because investors want to make a quick buck on this?
- 3pt14159 8y agoThe way funds are structured mean that money out is expected within a ten to twenty year window. Staying private and paying dividends is more of a hundred year window outcome. The reason funds are structured this way is that it gets complicated to pay out things like bonuses or to do estate planning when so much capital is uncertainly tied up in a single, illiquid entity. Divorce happens, tax rates change, people reasonably want their money.