Criss-cross rescue sauce
On the implications of crossed LLCs for LPs
Welcome back and happy Wednesday!
I’ve been posting for a few months (most recent post below) about the fact that GPs are crossing single asset LLCs in order to attract rescue capital, and now it’s finally time to dig in.
Today we’ll cover:
Simple definitions
An example using Preferred Equity
Negative implications to LPs and how to spot these situations
Advanced versions of this tactic