Why Sponsor Co-Investment Matters: The Skin-in-the-Game Advantage for Passive Investors

Do the deal sponsors have their own money on the line, or are they just using yours? Hi, I'm Wayne Courageous, third managing principal of CREI Partners. Passive investors frequently check Are the sponsors investing alongside me? This is often called skin in the game. When we as sponsors put our own capital into a deal, it signals our conviction in the opportunity. It also means we suffer the same consequences if things don't go well, which is exactly the alignment you want. Investors feel more secure knowing the team won't take undue risks. Because, after all, our money is at stake, too. At CREI Partners, we almost always invest in our own deals. We're usually one of the larger investors. In fact, we want the same returns our clients are getting. Some groups might not invest in anything themselves, which doesn't inherently mean a deal is bad. But you have to ask, why not? Is all their capital tied elsewhere? Do they not believe in the project fully? Passive investors look for that co investment because it speaks volumes about confidence and shared faith. We put our money where our mouth is. If this is the kind of partnership you prefer, come join forces. Sign up for our free passive investor coaching program@ passiveinvestorcoaching.com See how we stand by our investments. Shoulder to shoulder with you.