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Take 40% and raise capital for the VC operations as a separate transaction than from the LPs, of course. Efficient markets.
by leashless 2y ago
Take 40% and raise capital for the VC operations as a separate transaction than from the LPs, of course.
Efficient markets.
- SkyMarshal 2y agoHow would you raise capital for operations separately from LPs? What's the upside of that for any investor? Do they get part of fund returns? Nobody is giving any kind of fund any money unless they get part of the fund returns for it.
- leashless 2y agoThey would take equity in the fund, of course.
- notahacker 2y agoSo they take 40% of future portfolio returns, and then sell half of that up front in return for investment of 2% of total funds managed and end up exactly where we are now but with added complexity....