Investor – Manager Alignment Strategy
Aravaipa creates and sustains alignment between the interests of its Investors and Managers. This strategy grew from the Founder’s frustration with most venture and private equity funds, which are first and foremost structured for the benefit of their managers. 2012 Kauffman Foundation research confirmed that, on average, the 100 venture funds it studied returned 2% to their managers and 1.5% to their investors. The lack of alignment becomes exaggerated when large funds underperform and managers earn 2% returns while their investors lose money.