Redeeming the Exit: Structured Equity
I think a lot about financing that's built for purpose. For some time, I'd been focused on exploring as a "fintech for good twin fund model", which has since been both refined and expanded into structured equity models more broadly. I wrote about this in ImpactAlpha and on Linkedin, and am sharing it also here for ease of reference + for ongoing discussion while testing this concept live as a Visiting Partner with True Wealth Ventures. I welcome your thoughts!
The Challenge & Who's Meeting It:
Looking for an alternative to sitting in the back half of a 10+2 fund with strong companies constrained by misaligned capital structures and long paths to liquidity? A growing group of practitioners is already building alternatives designed for exactly this.
The Why & What Now:
As payouts stretch and timelines extend, some investors are building models that "redeem" the exit through company performance, rather than relying solely on a singular liquidity event like an IPO or acquisition, which can feel increasingly elusive.
Often called structured equity, these models are designed up front to provide early risk capital with clearer paths to liquidity by "exiting the financing" (often in 3 to 5 years). They are also well aligned with impact fidelity and with returning ownership to founders over time.
Big thanks to ImpactAlpha for featuring:
🔁 This "trend" (spoiler alert: it's more like your favorite style come back around)
🌐 A non-exhaustive list of practitioners building and operating these models, including my own work with True Wealth Ventures
🗣️ The call to action: if you're a fund manager, DAF holder, founder, or someone shaping the legal and tax infrastructure, let's connect. You're in good company.
You can catch the original thread and join the conversation on LinkedIn. To read the full piece on ImpactAlpha, click here or on the image below.
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