Fwd: [Part 2] Co-GP Investment Structure Options

---------- Forwarded message ---------
From: Richard C. Wilson <clients@familyoffices.com>
Date: Tue, Feb 8, 2022 at 3:19 PM
Subject: [Part 2] Co-GP Investment Structure Options
To: <stevescott@bydf.com>

Hi Steve,   I wanted to follow up with Part 2 of my Co-GP investment structure options insight that I really think you can benefit from. GPs that are managing $1B+ sometimes don't feel the need to work with Co-GP partners, at least not as readily.  We are structuring one with a $4B+ group, but many are done with $100M-$500M AUM investment firms in my experience.   GPs who are really small might not have the credibility and the track record to even attract a Co-GP partner.  If someone has only done 2 deals at $4M and $8M each, they may not be developed enough to be trusted with a $10M or $50M investment from a JV partner.   For an emerging independent sponsor or fund if you can get one and go from being small to medium or medium to large, or go from being almost non-existent to doing your first couple deals to being more substantial and credible and get that track record and momentum going, that can mean everything in this world. Building momentum takes: Trust Consistency Track record Constantly learning faster Typically in this industry it takes an open mind, so while rigidly sticking to your values you are creative and flexible in how you structure deals This is something that can be used to gain momentum if you're having trouble getting going. And sometimes the investments raised for a Co-GP, like an $8 million or $40 million check that comes in from a single investor, is hard to do.   It takes a lot of time, but it's definitely possible, and we know people in our club that have done that from reaching out pretty cold to investors and just working the relationships over time.   They take 18 months or two years or two and a half years to close, but a $40 million investor replaces 400 $100,000 investors. So, it's worth planting those seeds while you continue to get deals done with smaller investors if you're on the capital raising side of things.   And if you're a larger investor on the private investor side of things, it can be worth considering this to boost the returns for you and your family or your clients if you can find a good Co-GP partner to do a deal with.   If you happen to know of someone who would also benefit from learning this information, please feel free to share this with them. Otherwise, thank you for your time, and I really hope you were able to gain some valuable insight for all of your future investments.   Richard C. Wilson Founder and CEO Team Help Line: (305) 503-9077 Family Office Club 11445 E Via Linda Suite 2-623 Scottsdale, AZ 85259   Reply to this email if you are interested in learning more about Family Office Club. Our investor club connects you with over 3,000 investors to help you close more deals and raise more capital in 2022. Or speak to someone on our team for additional details at 305-503-9077.   We have both a workshop coming up in March as well as our 500+ person Family Office Deal Flow Expo on March 28th, so please stay tuned for details on those events coming soon. Family Office Club, 11445 E Via Linda, Suite 2-623, Scottsdale, Arizona 85259, United States, (305) 503-9077 Unsubscribe Manage preferences