Kim Lisa TaylorSecurities Attorney, Founder, Syndication Attorneys, PLLC · Corporate Securities Attorney, 2x Best-Selling Author, Nationwide Speaker | Private Placement

Earning Your Share in Syndication Management

26 Jul 2024 · 1 min

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In this segment, the speaker emphasizes that management rights and Class B interest shares in syndication must be earned through performing defined tasks across various responsibilities, not simply granted in exchange for raising capital. They advocate creating written job descriptions that outline each participant’s allocated percentage based on their skill set and commitments. If an individual fails to fulfill their assigned duties, the share is reallocated to others who assume those tasks, ensuring that management percentages reflect actual contributions.

Chapters

Anybody comes to you and says, I can raise all the money, but you have to give me 50% of management, tell them thanks, but that's not how it works. You say, okay, well then you need to make sure that you're doing some of each of these jobs within all these quadrants, because that's the way you're going to get to that number. You know, people have to earn their management rights. They have to earn their share of Class B interest. They have to earn. And if we write it a job description for them based on the last slide saying, this is what you raised your hand to do and said you have the skill sets to do, then, you know, that's fine. That percentage that we've allocated to you is gonna stick. If you don't perform on one or more of those tasks, then somebody else has to do it, then we're gonna reallocate.