Tringas: Earnest Capital's cash returns will primarily come from exits, not dividends
Tyler Tringas · Tyler Tringas: How Earnest Capital Hopes to Re-Invent Startup Investing · Jul 8, 2020 · at 1:06:20
Tyler Tringas, founder of Earnest Capital, discusses fund return mechanics with Nathan Latka, comparing profit-sharing payouts to liquidity from company exits.
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“What I will say is if you're talking about DPI, you're talking about actual cash dollars coming back to us. I think the majority of those cash dollars come from the exit events or at exit event, either the company sells, right? Or we at some point decide that we need to sell our interests, right? ... The majority of the dollars have to come from that, and they don't have to. I predict they will, and the main reason is the asymmetry”
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