Family Joint Venture

Traditional Private Equity vs. RAP Joint Venture Model

Traditional PEG Model:

Private Equity and Family Investor goals not always mutually aligned

  • Private Equity Group (the General Partner or “GP”) raises a pool of capital from investors (LP’s)
  • The pool of capital (PE Fund X) is used to make direct investments in multiple operating companies
  • The GP is responsible for fund raising, making acquisitions, and maximizing the greatest return to their LPs and themselves
  • The GP is incented to deploy capital quickly to maximize management fees (2% on LP’s committed capital)
  • LP’s must advance a significant portion of their total commitment on day 1
  • LP’s have very limited say in acquisitions and lack control or insight into company performance
  • The goals and objectives between the GPs and the LPs can be in conflict due to investment cycles, fund raising requirements, risk tolerances, etc.

RAP JV Model:

Partnering with HNW families brings expertise and capital together

  • RAP’s partnership model combines Family operating and equity capital with RAP’s deal and operational expertise
  • RAP and Family Investor form an exclusive relationship with a long-term investment horizon
  • Six to eight Families are sought with the collective capability to invest up to $25 million in equity per transaction
  • RAP will complete transactions up to $100 million in Enterprise Value, comprising 2 or more transactions annually over the next 5 years
  • RAP’s principals invest alongside the Families
  • Families are not required to advance any acquisition funds until closing date

RAP Full-Cycle Direct Investment Process

Full-Cycle Direct Investment Process