We seek to ensure that the incentives of each party involved in an investment, including ourselves, our investors, service providers, operating partners and others, are aligned as practically as possible. In fact, we believe that often one of the most important terms of a potential investment is to ensure that all parties are motivated by the same outcome, or metaphorically speaking, we want everyone in the same boat paddling in the same direction.
The overall structure of a transaction can also mitigate risk. By thinking creatively and outside the box, solutions can often be found that work for all parties involved. In the private credit space, for example, we have often found that many banks and other lenders approach investments with a “one shoe fits all” mentality. Our ability to structure around various obstacles not only allows us to obtain incremental deal flow, but also to mitigate the risk of a given investment through transaction structure.