Fake Skin in the Game

Richard Wilson is CEO of the family office club. He talks about having fake skin in the game and how to structure a deal so that you can be seen as credible by investors. Richard says many times sponsors only put up five or ten percent of their equity into a deal with 65, 70% leverage charging a 1% acquisition fee and just a 1 or 2% management fee they effectively have no skin in thegame six to nine months into the deal.