Richard Wilson: who owns the capital raising work?
Richard described an investment partnership with people reviewing deals and managing financing, but nobody focused full time on raising capital. He used the example in his module on mistakes to avoid.
Other important jobs can occupy the team
His example included partners looking at deals and another person handling bank financing and underwriting. Those activities kept people busy. The gap was a defined commitment to the work required to bring investment capital into the company.
The organization chart reveals the gap
Richard connected the missing role with firms wishing they could make more progress. His example makes it possible to examine the allocation of partner time before assuming that another deal will solve the problem. It concerns responsibility for raising capital, beyond assigning a general title to a partner.
In Richard C. Wilson's words
"nobody is really full -time focused on raising capital" (Richard C. Wilson, Richard C. Wilson's recorded Rainmaker Series module)
How to use this
- Name who is responsible for the capital raising work.
- Compare the hours allocated to that work with the progress the partnership expects.
Questions and answers
What was missing from Richard's example?
A clear commitment of partner time to bringing in investment capital.
What other work occupied the partners?
Deal review, bank financing and underwriting.