“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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provide seed/anchor capital to emerging GP firms to solve the cold-start problem and enable a material first close
“You're not actually consummating a transaction where you're acquiring a stake… you provide material anchor capital and get fee concessions.”
“In exchange, you can have fee concessions… you're really taking that stake in exchange for providing material LP capital.”
“You can solve that problem with enough data and enough time, you know, and that did took us about five years to solve that problem.”
“I was the first one in 150 years that had ever solved the problem… they offered me a scholarship for aerospace engineering.”
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