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#383 Todd Graves and his $10 Billion Chicken Finger Dream

Founders

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Todd Graves' and Daniel Ludwig's Creative Financing

  • Todd Graves expanded Raising Cane's by acquiring failing double drive-through burger joints and converting them cheaply.
  • He financed this by securing subordinated debt notes from angel investors with a guaranteed 15% return, using these notes as collateral for bank loans.
  • Daniel Ludwig, once the richest American, started with a 'two-name paper arrangement'.
  • He secured long-term charter agreements with oil companies, then used these as collateral for bank loans to build or renovate ships.
  • Oil company payments went directly to the bank, covering the loan and depositing the rest into Ludwig's account; this maximized leverage and minimized personal investment.
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