Forget the J-curve, focus on the alignment curve
16.09.2024 – Articles
Key thoughts and takeaways
Anti-fragility (over resilience): the ability to evolve through challenges rather than just resisting them
Build boards based on collaboration and learning
Build collaborative relationships within the GP (rather than transactional ones)
Embrace diversity
Recognise one’s own weaknesses
Act for the good of the group rather than for individual gains and status
The baked-in alignment offered by the LP/GP model has long been the industry’s most prized and unique asset. With all stakeholders incentivised to achieve the same outcome (decent returns) not only is everyone moving in the same direction, but risk is managed naturally.
So the theory goes. The reality is a different story, and one that in challenging market conditions such as we’re currently experiencing is exposed and exaggerated.
Kevin Ryan, founder and CEO of THREAD, with more than 15 years of advising investors, boards, CEOs, and management teams pre- and post-M&A, believes alignment and collaboration is paramount to achieving success.