Capital partner ideas??

[David Banker]

Good morning BP. A conceptual question for you:

From the point of view of a capital partner arranging a partnership with an investor who is getting into the game and will do all the hustling and managing of the business…how would you propose a cash flow and equity split under the below two scenarios? An assumption with both is that you want the relationship to continue indefinitely and you are already set in terms of wealth.

1) you are 100% self serving, while keeping the other partner incentivized to keep making you money.

2) the other partner is a personal/family relationship and you want to earn a return on your money and maybe keep some equity but, again you’ve made your wealth elsewhere and you just want to help them be successful.

Go!