How does the economic relationship with your Entrepreneur Partner work?

  • We provide search capital in two contributions: at launch and after 11-12 months

  • We provide the equity required to close the acquisition (including all deal fees and costs)

    • We also have the senior lending in place for any deal we’d like to do

  • Our partner has the right to invest with us, pari passu (on the same terms), for up to 20% of the deal value

  • Our capital contributions go into the deal as participating preferred units, accruing a 10% annual coupon rate

  • Upon close of the deal our partner is granted 10% ownership of the business, in common units

  • Our partner vests into an additional 15% ownership, in common units, vesting quarterly over 4 years

  • HLP collects 100% of profit distributions from the company until we have recovered our equity and accrued preferred interest, at which point we convert to common units

  • Our partner gets a catch up, meaning she then collects 100% of the distributions until generating 25% of the total funds distributed up to that point

  • If Halstatt converts to common before our partner's 4-year vesting window is complete, she fully-vests immediately

  • We split future distribution streams on a pro-rata basis