Richard Wilson: the profit-share tradeoff in his co-GP example
Richard described a co-GP relationship that could concentrate capital-raising work while sharing the sponsor's economics.
The relationship could change the work
He discussed a partner contributing sourcing, expertise or capital. In the capital example, fewer relationships could complete more of the fundraising task.
The sponsor shared its participation
Richard said this could involve giving up some of the sponsor's profit share. He presented the possible reduction alongside the potential change in execution.
In Richard C. Wilson's words
"be sharing your profit share with a third party" (Richard C. Wilson, recorded Rainmaker Series module)
How to use this
- Describe the contribution expected from each party in the example.
- Record the economic concession alongside the proposed operating benefit.
Questions and answers
What concession did Richard describe?
Sharing the sponsor's profit participation with another party.