The flexibility of the deal-by-deal model also manifests in break-ups. 💔
Traditional partnerships tie up equity, control, roles, and obligations in one entity (startup, fund, etc.), where it’s administratively, legally, emotionally, and financially complicated to part ways. Splits can prompt legal disputes, GP removal clauses, etc.
Independent sponsors, however, can easier split up because they can just let existing deals run their course and simply don’t do the next one together. Priorities can shift, values diverge, or life changes, and this model respects that. Not every collaboration needs to turn into a decade-long marriage. Sometimes, one deal is enough.
More about this in today’s Minds Capital Podcast episode with David Acharya. Will Smith didn’t like the hypothetical breakup discussion, but my whole point was that this will be very difficult for us at Minds Capital 😅
