3min chapter

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#128: $500M+ to Boost Energy Efficiency in Commercial Buildings — Al Subbloie⁠, CEO of ⁠Budderfly⁠

Entrepreneurs for Impact

CHAPTER

The Importance of a Waterfall in Private Equity

The typical escal agreement is 80 to 100 pages. Chris: I'm a big believer, look in the mirror, what does it look like? That's what it is. The notion of a waterfall, you do have to pick. And we picked customer number one, number one. Their monthly financial benefit goes in their pocket. They get it. No matter what, it's not. People use the word guarantee, Chris. Why do I hate it? There must be a problem if you have to guarantee something. Right? So for us, it's contractual. It's just simple. It’s just that you're last in line. You've articulated such a crucial decision point

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