#23 Alternative Asset Investment Structures
Explore alternative investments, master investment structures, and gain private equity investing insights to protect capital and maximize returns. You’ll learn how each structure impacts liability, taxation, investor rights, and control, plus how management fees and carried interest work in real-world scenarios. Whether you’re allocating capital into private equity, real estate syndications, or other alternative investments, this guide will help you evaluate deals with confidence and negotiate from a position of strength.
Understanding Investment Structures in Alternative Assets
Master investment structures to protect capital & boost returns.
In this episode of Alt Investing Made Easy, securities attorney Roland Wiederaenders and corporate attorney Sarah Florer deliver a concise “mini law school” on investment structures. From corporations to LLCs, LPs, and GPs, they break down how each impacts liability, taxation, investor rights, and control. You’ll also learn how management fees and carried interest shape returns. Designed for growth-minded investors, this conversation simplifies complex legal frameworks so you can allocate capital with confidence and negotiate deals from a position of strength.
Top Takeaways
- Entity choice shapes returns — Liability, tax treatment, and control vary widely between corporations, LLCs, LPs, and GPs.
- LLCs offer flexibility — Pass-through taxation and adaptable governance make them ideal for many private deals.
- LPs balance passive investment with active control — Limited partners enjoy liability protection; general partners carry unlimited risk.
- Management fees vs. carried interest — Understand how each impacts promoter incentives and your net returns.
- Investor rights matter — Always clarify voting power, information access, and profit distribution terms before committing capital.
- Conversions are common — Moving from LLC to corporation is straightforward; the reverse can trigger tax consequences.
- Terminology can mislead — Industry jargon like “general partner” may differ from its legal definition—know the difference.
Chapters
00:00 – Introduction to Alternative Assets
03:13 – Understanding Business Entities
05:53 – Diving into Corporations
09:11 – Exploring Limited Liability Companies
12:09 – Limited Partnerships Explained
15:03 – General Partnerships and Their Implications
17:46 – Management Fees vs. Carried Interest
21:02 – Comparing Corporations and LLCs
23:54 – Navigating Investor Rights and Control
Credits
Sponsored by Real Advisers Capital, Austin, Texas
If you are interested in being a guest, please email us.
Disclaimers
“This production is for educational purposes only and is not intended as investment or legal advice.”
“The hosts of this podcast practice law with the law firm, Ferguson Braswell Fraser Kubasta PC; however, the views expressed on this podcast are solely those of the hosts and their guests, and not those of Ferguson Braswell Fraser Kubasta PC.”
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