Ep. 96 All Things Independent Sponsors, with Drew Brantley, Managing Director of Frisch Capital Partners
Investors & Operators
00:00
How to Make Money as an Independent Sponsor
The first 10 million that gets paid out. I'm going to get back and that's the return of my principal. The equity pool was 10 million dollars five years ago. We sold a business enterprise value of $100 million five years later. Exactly. So we sell that business. Let's say there's no debt, cash free debt free. And you didn't put any money. Okay. Then let's say the way we structured it is after two X, you're going to get 10% as the independent sponsor. That means that the next so after that first 100 10,000, there's 90,000 that’s left over. okay. Next 10 or 90 million
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