Complaints from lawyers?
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a fund with guaranteed buyback…how do you say Pyramid Scheme in Portuguese?
The guaranteed buybacks always seemed suspect to me. Lots of questionable investments in this area.
I’m just starting to get in flight with the GV process and asked about this very thing on one of the funds.
What I was told is that the buyback is essentially a put option against your investment for the initial value. Unclear to me what the underpinnings are for this: if the partners are putting up their own capital to cover the put if exercised or what.