
Ep. 96 All Things Independent Sponsors, with Drew Brantley, Managing Director of Frisch Capital Partners
Investors & Operators
00:00
The Most Common Board Decision Between the Frequency and Compensation
A management fee, if you hit bumps in the road and let's say you're breaking covenants, the lenders can and will cut off your management fee. So that means you might have to spend time where you're not technically getting compensated. Now, usually, if it gets shut off for a period of time, it can accrue until things get turned back around. Most people understand that. It really just depends on everybody's situation. And if you ask, a lot of times people can be amenable to that. If an independent sponsor asks and says, Hey, can I have this monthly, I really needed to keep the lights on. Yeah, that's one way to think
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