Yeah it’s a serious challenge. We way undershoot what we believe we’ll hit and you’ll often hear from LPs that they are comparing your deal to another based on returns (apples to oranges without context). It’s challenge to overcome - however in the end it’s always better to be truly conservative.
The stock market is crashing! Trump has ruined everything! This is the end!
Or…to quote the great Dave Chapelle: “…and hear me out when I say this…you could shut the fuck up.”
The stock market has simply rung out Biden’s last gasp of free money before he lost the election. We are back to where we were a year ago.
@chernobelskiy It’s your reach… originally it was close people in the industry. Now that your reach is wider the trolls are attracted. Sad people act like that.
It’s always hard for me to remember most people are waiting for permission (15+ years as entrepreneur) when talking to my employeed friends.
I’m like dude just add value, make something happen your boss will be happy (not always true in reality 😂).
Old habits die hard. Keep after it ☺️
@OneManLBO Totally true. Takes multiple channels.
I think that’s where people get it wrong with email… they fail to pick up the phone after they’ve softened the Beachs.
@leveredvlad@OneManLBO Yeah that’s true.
But it’s infinitely cheaper than sending direct mail $0.50-$3++ per piece. Trade off is the response rate and open rate is higher on DM with good data. Especially when followed by well timed phone calls.
@realEstateTrent Very well said. It’s something you hope you never face, but especially later in your career. PGs and debt can haunt you. Downside protection for the win.
There’s changes you could make that would cover the issues mentioned in the other comments (mainly min return). What I’ve found is people just prefer traditional structure (to pay fees/carry).
We thought about rolling out something with no fees… but have found LPs don’t get it (tested messaging without a launch).
A pref + 80/20 with fees/pref is like a preferred + 60/40 without fees. The first just looks/sounds better. Personally as a GP assuming I can cover team overhead I’d rather align interest with backend, then fee heavy.
I think with a hard pivot and education it could get done. Just creates another barrier with LPs. So likely not worth it.