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I think this is definitely true, same is true when alignment between LP and GP
Free LP deal analysis with a few lessons (as always not investment advice or endorsement of comments/analysis)
Recommend this free session if you want to learn about legal docs side of investing. Also here’s a great video by Michael on structure.
CLOs are a very big (behind the scenes) part of syndications… recommend reading this
I think the same is true for LPs - goal should be minimizing downside while beating ~10% returns. I’ve said this many times before but I’ll repeat it here - don’t focus on IRR, or any single metric for that matter, when investing.
Said slightly differently, if you don’t understand the top downside catalysts to an investment, don’t invest
Source of coinvest is important.. read more here
Have a wonderful weekend!
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Beating downside risks while getting ~ 10% return. I like that. It could be a whole post on what are the top 10 risks that have to be beaten. IMO a good majority are GPs assumptions in the deck. Don't need to go much deeper to find your risks. I notice you say beating risks first....not 10% return first. As I experience some losses that rings true.