Investing with friends?

[devank]

Why bother with JV if you have*deep pockets? Isn't that the key reason why people go into JV?

 

[Deltaberry]

Few reasons. Diversification. We are testing some funds management business model and seeking an AFSL licence. The people I've chosen are most likely to make a billion or have that or close to that already, so I want to partner with them in many things. That said the last issue is a deep pockets point. If I had a billion I may not partner with them. I guess they do it for fun and because we are friends. But we also bring complimentary skills. They wouldn't have my access to information and networks in certain countries, and vice versa.

 

[red liverbird]

I guess they do it for fun and because we are friends.

To be honest what more can you want! Doing something fun and exciting with your mate that gets you both closer to your goals can be pretty satisfying!

For me peronsally its always been money issues between family members that has blow up. Feels like I've had a pretty charmed run with friends... but thats just me

 

[Deltaberry]

Yea I think the difference is, you're more likely to find like-minded friends who have a knack for succeeding. But with family, chances are they are greedy, useless but leech. Which is to be expected, since the odds are against you. The only difference with friends is you can choose them, you can't choose your family. It's like picking your hand before a poker game starts.

 

[Colin Rice]

My advice is, always choose partners with big vision, deep pockets and ones who don't stress the small things, which rules out most people. The question you also need to ask yourself, do you have big vision and deep pockets? Because maybe you're the problem.

I like that perspective ^^^^^

 

[Jaggannath]

Before you start you need to write out exactly the expectations, and the risks, and both understand them. Seen a few JVs not work, and less that do, where this isn't done up front.