In this episode, we explore the historical origins of the carried interest role, dating back to the Renaissance era, and how VestCapital adopts a similar approach today. By aligning its risk profile with investors through profit-sharing structures, VestCapital ensures mutual success, drawing parallels between the investment strategies of Venetian sailors and modern real estate funding.

• Investment Deal Structure at VestCapital

  • VestCapital structures its investment deals to align the interests of both the company and its investors.
  • The approach ensures that when VestCapital performs well, the investors also see benefits.
  • This alignment of interests aims to "rise all ships," fostering mutual success.

• Historical Origin of the Standard Carried Interest Role

  • The concept traces back to the 16th century during the Renaissance era.
  • Venetian investors provided capital to sailors who undertook risky voyages to purchase and trade spices.
  • Profits were split 80/20, with 20% going to the investor, establishing an early model for shared profits.

• Parallels Between Renaissance Investment and Modern Practices

  • Just as Venetian investors backed entrepreneurs in risky ventures, VestCapital backs modern entrepreneurs by providing necessary capital.
  • The 80/20 profit split model is mirrored in VestCapital's approach to aligning with investors' goals.
  • This method of structuring deals ensures that both parties share in the risks and rewards of the investment.