Publications
Publications
- June 2022 (Revised November 2022)
- HBS Case Collection
Platinum Capital
By: Jo Tango and Alys Ferragamo
Abstract
How should a venture capital firm divide compensation and decision rights between its founders and its next-generation partners? Platinum Capital faced this decision in July 2020. Platinum’s younger partners had just requested a piece of the firm’s highly lucrative Management Company from Platinum’s founders. The founders felt they were owed compensation for the risk and “lean” years they had faced when founding the firm. Yet, the high-performing new partners had other career opportunities and wanted to be “real” partners in the business. Should the founders grant the next generation access to the management company? If so, how should the firm’s decision rights work in this new scenario?
Keywords
Decision Rights; Business and Stakeholder Relations; Compensation and Benefits; Governance; Retention; Negotiation; Partners and Partnerships
Citation
Tango, Jo, and Alys Ferragamo. "Platinum Capital." Harvard Business School Case 822-134, June 2022. (Revised November 2022.)