Teedup Quick Facts

In most cases, we expect the first distribution to be paid out 6-12 months from closing. From that point, we target quarterly distributions. The investor returns begin accruing from the closing date.

The usual range is 3-24 months depending on the deal. The transition plan from the current owner to the new ownership is a critical piece to figure out prior to closing on a transaction to ensure a successful investment.

After a purchase the company goes through a normalization period for cashflows and operations.

In this period, their are unordinary costs associated with the acquisition and the Sellers are receiving large payouts from the Company’s cash and accounts receivable to reconcile to the agreed Working Capital Target. Company cashflows during this period are with a range of predictability, but, by design, are not set in stone. Throughout this period the Company cash reserves must be built back up to ensure the health of the Company.

During this period, the Company is also going through the Transition Period, in which the Entrepreneurs must be trained by the Sellers to successfully takeover management of the Company operations and lead its growth.

While both of these events are happening, we set expectations that the first distribution doesn’t come back for 6-12 months. Paying out returns before the Company’s cash flows and cash reserves are at a healthy level puts the business at risk. Although, cash is not being distributed, investor returns are being accrued from the closing date. Investors are paid these returns prior to TEEDUP receiving compensation per the aligned performance model of the firm.

TEEDUP is a private equity firm creating investment opportunities for individuals looking to build wealth through alternative investments. TEEDUP invests in established, cash-flowing companies that have been in existence for 5+ years. We charge no management fees and only make money after our investors make money. The 100% performance-based model forces thorough evaluation and attentive stewardship of the companies and investor dollars. With that compensation structure, our existence serves as a direct testament to our investor success.

TEEDUP is investing in companies with successful operational histories of 5+ years. Our partner companies are a part of a growing ecosystem of companies designed to cultivate the healthy growth of all involved through strategic partnerships, utilizing each others’ services, and managerial support from the TEEDUP portfolio manager.

If you have considered selling your company, or have thought “with some investment partners, we could really grow to the next level”, we would love to chat.

At this time, you might be thinking, ”I do want to sell or grow to the next level, but we are not ready right now. I want to do this in 1-5 years” then now is the right to begin the conversation.

Seriously, in a deal there is a solution for almost everything except for a lack of time. If we have 1-5 years almost every option for a successful transition is open to us depending on your ideal vision for your involvement.

So what is TEEDUP?

TEEDUP is a private equity firm creating investment opportunities for private individuals looking to build wealth through alternative investments.

Interesting. It’s a pretty competitive game in private equity, what makes you guys different?

TEEDUP has a specific niche in established, cash-flowing companies that have been in existence for 5+ years. Simply by winning the war of attrition these companies are better than 65% of other companies in the market and can produce passive income for investors for the foreseeable future.

Really. Ok, so how does your company make money then?

Many investment firms will adopt a 2/20 model. That means that 2% of the fees of the money raised will go to the firm whether the investors make a dime of profit or not. TEEDUP has no management fees and only wins after its investors win. In order for TEEDUP to make money, our investors must have gotten their preferred returns first.

How can you afford to do that?

There’s two parts to that answer. First, we payout distributions to investors quarterly and reconcile the preferred rate of return. As long as the returns are on schedule, TEEDUP gets paid at that time as well. The second part is less of a secret, we have to steward our investments well.  The company must be one that has the infrastructure to support a change in ownership, and that performs in the future to support investor returns. There are no shortcuts, the company must be a winner.

Is that risky?

Of course, there’s risk. We can control the risk by investing in established companies with competitive advantages in established and growing industries. We also conservatively underwrite all our deals, making sure that they pencil out assuming little to no YoY company growth.