Being a Key Principle or Key Sponsor

[Vince Scolari]

Hi,

Is anyone currently acting as a KP on syndicated deals or has done so in the past?  I am curious how one would look/underwrite that in terms of investing? what risks do you look out for in order not to do a deal?  Any insight would be appreciated.  Thanks.

[Michael Le]

Originally posted by @George Ozoude:

@Theo Hicks @Vince Scolari Are there any other benefits (financial or non-financial) to being a KP on a syndication deal? In the scenario of the one-time fee at close, is this separate from the acquisition fee (if there is one)? In the equity scenario, is the stake typically different than that of the GPs or the passives? Thanks.

To get a commercial loan sometimes the lender requires you already have commercial loan experience. Kind of like trying to get your first job but they require job experience, it can become a Catch-22. So being a KP on a deal will give you some experience that will potentially help you when you later on when you're trying to get your own loan.