Talking Wealth Be the GP: How to Invest in the 2 & 20
Jan 7, 2026
Todd Owens, Managing Partner at Cantilever and a GP stakes investor, dives into the fascinating world of GP stakes investing. He explains why asset managers sell minority interests in their firms and how this approach compares to traditional private equity. Todd breaks down the economics behind management fees and cash flows, and discusses the importance of durable partnerships. Listeners will gain insights into the diligence process, competitive dynamics, and the rising demand for GP stakes, making this a must-listen for aspiring investors.
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Sell To Scale The Business
- Founders sell minority stakes to accelerate growth because owning a smaller piece of a bigger business often beats owning all of a smaller one.
- Outside capital lets GPs increase GP commit and raise larger funds, unlocking faster scale.
Three Uses For Proceeds
- Sellers use GP stake proceeds for capital restructuring, partner buyouts, or to facilitate generational transfers.
- Taking money off the table is possible but is the least attractive use from an investor perspective.
Diligence And Price Matter
- Do deep diligence: hire auditors and law firms, test investment performance, and compare to peers.
- Price the deal appropriately because valuation multiples materially change your return profile.