Reynolds: CrownRock used mutual ownership rather than tiered PE waterfalls
John Reynolds · Striking Oil – CrownRock by Lime Rock Capital (EP.428) · Jan 20, 2025 · at 31:21
John Reynolds, co-founder of Lime Rock Capital, discusses the structural incentives and long-term ownership model used for CrownRock.
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“This was not a term sheet that said, hey, under certain circumstances, the management team take is X percent of the profits, and above that level, it's Y percent of the profits. It was a mutual ownership structure from day one, where the management team and the Lime Rock team In parallel, thought as owners of a business jointly and building value through time with really no end date.”
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