1 LOI is Better Than 2 LOIs
1>2 If you have 2 new platforms under LOI: well done, but focus each investor meeting on 1.
Fundraising
76 posts
Covenant Territory
Covenant territory is when your TTM P&L is hovering close to the covenant thresholds. Being in covenant territory
Ass-Sitting is Tax-Efficient
“Sitting on your ass is tax-efficient.” - Charlie Munger Long hold periods = tax-efficient If you own two consecutive investments making
A+ Rejection Response
This is an A+ reply when a prospective investor has passed on your deal. (1) He replied. (2) He expressed
Benefits of All-Equity
I've both closed and exited from deals that were all-equity. When to do all-equity: (1) Growth hinges on
Discount Seller's EBITDA by 10%
Discount the seller's reported EBITDA by 10%. If your deal still works with a discounted EBITDA, then it
Same Amount In Each Deal
At Minds Capital we invest the same amount of equity into each deal. Why? (1) It eliminates emotion. When evaluating
Safeguards Against Fraud
No, I haven’t seen sponsors defrauding or scamming investors. But if it could happen at Theranos, FTX, etc., I’
Viral ad for Minds Capital
I'm attending the McGuireWoods Independent Sponsor Conference in Dallas this week (Oct 15-16), hosted by Jon Finger, Jeffrey
Skin In The Game
Optics of skin in the game for independent sponsors: Good: rolls closing fee plus invests cash Bad: rolls closing fee
5 Keys for Independent Sponsors
5 things I love to see in independent sponsors as an investor at Minds Capital: 1. Niche experience (expertise, knowledge,
Fundraise Anatomy
This chart shows what a PE fundraise actually looks like. Minds Capital - which invests equity in acquisitions led by
When Equity Is Oversubscribed
My $0.02 on what to do if your equity is over-subscribed: 1. Take the capital! More capital = Good. More
Best Practices for Base Case PF
4 best practices of a credible base case pro forma: 1. Projected revenue growth = Historical growth 2. Flat profit margin
Revenue Since Inception
One of my favorite charts is “revenue since inception." Usually CIMs only include 3 or 5 years of financials,
"Gap Equity" For Trad-Searchers
It's amusing how traditional searchers tend to position a shortfall in equity as a prestigious "gap equity&
Importance of Pipeline in Rollup
"How important is it to have identified targets when pitching a roll-up platform?" A sponsor recently asked me
Value of niche experience
Searchers who bring super niche experience have an incredible edge. There’s nothing more persuasive than talking to a searcher
Investor Perspective on Self-Funded Search
Panel debate on Acquiring Minds with Adam Borcz and Tony Cappaert.
"Super interesting!"
“That’s super interesting!” - Prospective investors who intend to never follow up.
Private credit before it was "cool"
“We’ve been doing private credit since before it was cool to call it that." - Hong Kong-based family
"Step-up equity"
"Step-up equity." Self-funded searchers use this term erroneously. They claim that if you inject 100% of the equity,
Always disclose yellow flags ⚠️
When creating an investment memo, you might be tempted to think that not discussing risks (yellow flags) makes for a
PG vs. Skin in the game
Yes, a personal guarantee qualifies as “skin in the game.” It will keep the searcher engaged. However, “skin in the
