Richard Wilson: separating debt payments from an equity kicker
Richard used a venture-debt illustration to describe two different sources of a possible return.
The illustration had two components
He described debt payments and a separate equity interest or participation right. The recurring payments and the potential later participation had different roles in the example.
He varied the terms in his explanation
Richard mentioned several possible combinations while speaking.
In Richard C. Wilson's words
"but you also get an equity kicker" (Richard C. Wilson, recorded Rainmaker Series module)
How to use this
- Label each payment source separately when documenting the example.
- Distinguish recurring payments from a possible later participation.
Questions and answers
Which components did Richard combine?
Debt payments and a separate potential equity benefit.