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Thank you, I was real curious how this was working. It sounds so fraught, I admire people who are able to handle ambiguity, and avoid simple interpretations, be

Thank you, I was real curious how this was working. It sounds so fraught, I admire people who are able to handle ambiguity, and avoid simple interpretations, better than I. My naive read: You have to convince a bank to give a brand new entity a loan, with the only real benefit accruing to the bank in the form of interest and yourself in the form of giving yourself a retirement gift. I honestly don't understand why anyone would play ball with that unless the interest rate was, say, 3-4 points above treasuries, so now it's the same thing as a PE buyout, but at least the money went to you

zrail 3y ago
There are lots of ways to structure it that don't involve an actual bank loan. It's very possible that the founder loaned the first tranche of shares to the trust and the trust is paying some amount of interest on that loan over time. Sometimes this is called seller financing.
derefr 3y ago
> It sounds so fraught Wait until you hear about charitable trusts! (And specifically, ones defined into existence by a person's will, such that it's up to a probate judge to figure out how to make the act of charity happen.)