Examples of strategic generosity as a way to build long-term value & trust:
• Yield on GP terms if capital partner brings know-how, heavy lifting, ops chops, closing certainty, etc.
• Allocate up to 15% of equity to stock options for management.
• Temporarily suspend your management fees if the portfolio company needs breathing room.
• Exit on the early side if stakeholders want to. Better than exiting too late.
• Credit intermediaries, vendors, brokers publicly.
• Don’t be a stickler on NWC true-ups post-closing.
Thanks to Cory Sandrock; learn more in the latest episode of the Minds Capital Podcast.
