This is personal.
Transparency
In his career, David has been on the other side of the table from independent sponsors, formerly known as fundless sponsors and often operating with no real experience or hope of raising capital. As the famous New Yorker cartoon had it, “On the Internet, no one knows you are a dog.” Rannerdale has no desire to waste your or its own time. David has had a lengthy career in private equity, serious relationships, and a reputation as a straight shooter. Rannerdale values its relationships with all counterparties, including vendors, sellside intermediaries and potential co-investors. Rannerdale, when it submits an indication of interest and at every point thereafter, will be totally transparent with all parties about the potential providers of capital in every transaction.
Alignment
Rannerdale exists as an outlet for David’s professional energy and a vehicle for investing family capital in unique transactions. While Rannerdale expects standard carried interest, management and transaction fees, the emphasis is on achieving a return on Rannerdale’s invested capital and on the carried interest. Rannerdale is not a broker looking to earn a commission. Rannerdale will invest a material amount of its founder’s family net worth in each transaction on the same terms as co-investors. This commitment to alignment extends to founders/vendors interested in continuing equity stakes alongside Rannerdale and management teams interested in co-investing and long-term equity incentives.
Flexibility
As an independent sponsor, Rannerdale can source opportunities in diverse geographies, industries, securities, and size brackets. Rannerdale can hold investments indefinitely, allowing company, market, and investor dynamics (rather than fund life and targeted five-year holds) to dictate how best to realize liquidity and returns. As it relates to size, Rannerdale envisions its own investment as being a similar dollar amount in each transaction, so its ownership will depend on transaction size, ranging from as much as 10% for smaller check sizes to something closer to 1% in larger deals. While Rannerdale will rely on the early and credible support of co-investors to gain traction, compete and win deals; co-investors will be able to underwrite individual transactions versus making a blind pool commitment.
Good Humor
David has been a culture carrier throughout his career. At Rannerdale – headcount of one at present – the goal is to create a culture spanning Rannerdale and its counterparties that is honest and serious but with space for personal connections and relationships that will transcend the individual deals. This is, in part, self-interested: good relationships will help with future deals. In larger part though, this is an end in itself. Everyone at or dealing with Rannerdale has to enjoy the experience. Our regard for one another has to remain always between at worst respect and at best admiration.