How Capital Formation Should Work
Est. reading time: 5 minutes
We believe placement fees corrupt everything.
When platforms charge 3-8% to connect investors with sponsors, they transform from alignment partners into transaction brokers. Their incentive becomes volume, not quality. The best sponsors won't pay those fees. The best deals go elsewhere. Everyone else gets what's left.
We believe in complete transparency.
We'll always tell you how we make money. We plan to offer future GP services to sponsors--advisory, asset management, that kind of work. But we'll never charge fees that compromise deal quality or investor returns. And we'll always be upfront about it.
We believe quality trumps quantity.
We'd rather facilitate fewer excellent deals than push volume to hit revenue targets. When your business model depends on transaction fees, you need volume to survive. When your business model is built on future value creation, you need quality to thrive.
We believe in community intelligence.
Every member benefits from the insights of the entire network. Concerning patterns surface quickly. Quality sponsors build reputations that mean something. Bad actors get identified fast. Information asymmetry decreases. Everyone gets smarter together.
We believe serious investors deserve serious access.
If you're writing $50K+ checks and doing real due diligence, you shouldn't be competing with tire-kickers for sponsor attention. You deserve direct access, real answers, and deals that match your sophistication.
We believe sponsors should keep their economics.
On a $10M raise, a 6% placement fee is $600,000 that should strengthen the deal, not enrich the platform. Quality sponsors come to us because we don't dilute their returns. They stay because we help them find the right investors.
We believe in building for the long term.
Short-term thinking optimizes for fees. Long-term thinking optimizes for relationships, reputation, and repeated success. We're building for 25 years, not the next quarter.
This is how we think capital formation should work.
If you agree, request membership below. If you're a sponsor who shares these values, launch your deal. Let's build something better together.
-- CREpublic
Atlanta, GA