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In this post, I want to share some new thoughts that build on Steve’s post, and connect them to Lean Startup methods. Worse, Robert Adams and his two partners got 20% of the carriedinterest in the fund, resulting in payouts of $30 million to the partnership. First, let me recap a key insight for me from Steve’s post.
But the biggest innovation was the “carriedinterest” (called the “carry”.) Aligning their interests with their limited investors and the entrepreneurs they were investing in. It would charge its investors annual “management fees” to pay for the firm’s salaries, building, etc. More on this in the next post.
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