Richard Wilson: two different endings for a royalty arrangement

Richard described royalty arrangements that ended after a return threshold and others that retained an equity interest.

One version ended entirely

In one example, he said the investor would receive a defined return and then leave the deal. The payment endpoint also ended the investor's involvement in that illustration.

Another version retained participation

He separately described a reduced participation interest remaining after capital had been returned. These examples distinguish the end of royalty payments from the end of every economic interest.

In Richard C. Wilson's words

"then we're out of the deal completely" (Richard C. Wilson, recorded Rainmaker Series module)

How to use this

Record the event that ends payments in each example.
Check whether the illustration also leaves a continuing participation.

Questions and answers

Did every royalty example end the same way?

Richard described both a complete exit and a continuing interest.