You still eventually need to return money to your private market investors at some point. So that just pushes the outcomes out later. Or, again, in the super rare case that you’re generating so much case that you can pay investors back at a rate of return they’re happy with with dividended cash flows.

> still eventually need to return money to your private market investors

If that’s what you pitched them. Most businesses are private. Most rely on outside funding. Most of them never exit, and are never expected to.

I meant the ‘super rare’ case.

It’s not so rare in some industries like oil and gas, etc where cashflow is the purpose of the work.

Add software that does what nothing has before.. and the table turns.

Agree.

The first time I saw how customizable a PE deal was, and how you could limit how much of a company you give away with how little of the PE you end up drawing by becoming profitable, I was surprised why it isn't more common in tech.

Can you recommend any books on this subject?

A lot of VC funds wouldn't accept your dividends because this type of income might create additional taxation and reporting obligations for them.

This model is interesting, and I've definitely been wondering about this a lot more in the new macroeconomy. Do tell more if you're up for it.

From my perspective, it's effectively the PE model except the funding source is the company's own revenue rather than investment capital.

I had drafted a reply but would be interested to know what you're looking after - is a story/experience of PE from a technologist on the business side what you're seeking?