Thread by @iamkoshiek

People who don't understand brand partnerships arguing over Bonang will be hurt to find out George Clooney doesn't own Nespresso

Normalize being happy for people's success

Rihanna has a 15% stake in Fenty. LVMH owns roughly 50%.

Kanye owns 100% of Yeezy yet ends up with 15% of sales after Adidas distributes the product.

Being synonymous with a product, owning a controlling equity stake & profit share agreements differ heavily across brands.

After expenses, Kanye nets between 10- 11%

Basically, Kanye makes 10c for every $1 in Yeezy sales.

In the weird & wonderful world of dealmaking there's buyback clauses, pre-emptives, lock-ins, exclusivity agreements, shareholder loans, exclusion clauses & sometimes even "negative control".

The focus is always on owning a company... when the focus should be on getting paid

This ties into how ownership (an equity stake) doesn't always translate to physical, actual hard cash in the bank - here's a thread

https://twitter.com/iamkoshiek/status/1253996357939081216?s=19

There's also a misconception that really wealthy people don't use debt.

Elon Musk is worth just under $40bn.

At one point his net worth was 99% tied to stock options (definitely not cash poor though).

To buy his properties, he took out mortgages from Morgan Stanley for $61m.

Why would he borrow?

Borrowing at attractive yields means you can really juice out your equity returns while remaining liquid & not tying up heavy cash into fixed assets.

A bit of clever structuring + leverage can turn small fortunes into big fortunes.