Quick prediction - let me know if this is wrong: (Apart of the top-tier) Most VCs will introduce revenue/dividend based pay-outs as an alternative to exits for existing portfolio companies. Reason: a lot of the investments will become strong companies but not strong exits.
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Replying to @andreasklinger
I think you’ll see: * leveraged buyouts by management with the leverage coming from PE, new investors, or (straightforwardly) banks lending against revenue * a whole class of companies that end up being bought by PE wholesale * some firms doing “internal” exits to satisfy LPs
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Replying to @patio11 @andreasklinger
“Hey VC it’s been 10 years; where is our money?” “The star in Fund 3 has not exited yet.” “Not an answer. I need an out. This is not optional; our stakeholders need money.” “Our permanent capital vehicle will buy your stake in Fund 3 from you at the current mark.” “Done!”
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c.f. Wistia for an example of #1. https://wistia.com/learn/culture/taking-on-debt-to-grow-our-own-way … What’s the largest similar transaction possible? I don’t think single digit billions sounds unlikely.
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