“You're not actually consummating a transaction where you're acquiring a stake… you provide material anchor capital and get fee concessions.”
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Said on How I Invest with David Weisburd
How I Invest with David Weisburd · E437: Doug Beyer on Raising Capital, LP Psychology & GP Stakes
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offer fee concessions to GPs in exchange for providing material anchor capital
“You're not actually consummating a transaction where you're acquiring a stake… you provide material anchor capital and get fee concessions.”
“When you're seeding a firm, you're predominantly providing anchor LP capital to help solve the cold start problem… you give confidence to the marketplace that you're a going concern.”
“Country Road Group was cutting its concessions by about 100 of its 283 concessions in David Jones.”
“He cold-called the man who built Arizona's second-largest HVAC company and offered him equity in exchange for advice.”
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