When syndicating is outsourcing an investment decision

There are a few good reasons to syndicate an investment:

  • More & deeper pockets around the table
  • Complementary set of experiences
  • Complementary set of networks
  • Complementary set of personalities to help the company
  • Entrepreneur may not want to rely on just one institutional fund / good to have a balance

I am sure there are more – basically they are all about assembling the best “capital team” for a company.

There are also a few bad reasons to syndicate:

  • To make you feel better about your own investment decision
  • To increase chances your partners will support the investment
  • Because it’s what you do
  • Etc.

When you are syndicating to make you and your firm feel better, you are practically outsourcing your investment decision. It may be important to remember then that we earn fees and carry to make investment decisions.

4 Comments on “When syndicating is outsourcing an investment decision”

  1. Good day very nice web site!! Man .. Beautiful ..
    Wonderful .. I’ll bookmark your web site and take the feeds also?
    I’m happy to seek out numerous useful info here within the publish, we’d like develop more strategies in this regard,
    thanks for sharing. . . . . .

  2. Josh says:

    What’s up, I log on to your blog on a regular basis.
    Your humoristic style is awesome, keep up the good work!

  3. This page definitely has all the information and facts I needed about this subject and didn’t know
    who to ask.

  4. I was very happy to find this web site. I want to to thank you for your time due to this fantastic read!!
    I definitely enjoyed every bit of it and I have you saved to fav to look at new
    information on your website.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s