My current catch-22

There are some deals right now that:

  • Aren’t right for our current fund (because the near-term returns aren’t high enough), but
  • I want to buy (because I think they have a lot of potential down the road)

One obvious solution to this problem would be to buy the deals with non-fund money, either my own or from a JV-partner.

The problem is that doing so might come pretty close to the line from a fiduciary perspective, because I’ve committed to my fund investors that I will give the fund my best ideas.

If I go buy these deals with separate money, the investors in my fund might get the idea that I haven’t lived up to my moral and legal obligations. And that’s not something I’m willing to let happen.

So, I’m going to let these pitches go by. How annoying.

For more pieces like this, join Moses Kagan's mailing list

    In case this isn’t already obvious, I would never sell your email address to anyone, ever.