LP Uncovered · Octavio Sandoval, Illumen Capital
GP Commitment Is The Real Unit Economics
“The GP commitment is our equivalent of unit economics... does that GP have enough skin in the game?”
Transcript
this one might be a little controversial. It's the best. Let's make this podcast spicy, if you will . And so the GP commitment is is our equivalent of unit economics. And what I
mean here is does that GP have enough skin in the game? And the reason why this is controversial one, sometimes a lot of the GPs that come to market as emerging managers, they
don't have the wealth to you know start their fun. And so you'll see promissory notes, meaning that they'll you know allocate the management fee to