Good afternoon,

Can anyone help point me in the right direction for self-funded deal structures people have used? I am working on a deal in which I will be personally guaranteeing the loan and intend to maintain a 60% - 80% of equity. This structure is a bit different than the traditional Private Equity structure that my investors are used to so I would like to see what other people have used. Right now, I am thinking amount having my investors bring 25% cash and the other 75% a loan that is guaranteed by me. If they sell in 5 years, due to the low equity proportion, the returns do not look great. Because of this, I was thinking of allowing them to recoup their investment from FCF before my 75% takes a FCF distribution. Is this common or is this giving away too much up front?

Cole Edwards