I have one investment that I do not include in my list of assets or liabilities, because I don’t know precisely how to in a way that makes sense for me, yet.
I invested in a friend’s small business last summer. I am one of under 30 shareholders. I am a silent partner. This sounds terribly foreign to me, even a year later. In part, because I am an out of state investor. I invested on the strength of his paperwork and photos and his pitch.
My friend created a food business that I understand and believe he can succeed in. I finally got to check in on that business in person as part of my vacation trip today.
(when did this become my life? It sounds terribly mature)
(checking out the kitchen and the sous vide)
It tastes incredible. Seriously, my mouth is really glad I had to check out my investment. I now understand why all of his customers are spreading the word.
I do not know if my share will make a financial return. I believe it will, based on projections. He is attracting clients rapidly. I suspect that he’ll need to do another capital infusion in the next 12-18 months, unless there is a recession, because he will need to expand to keep up with the demand. It’s a good problem to have.
I also believe that investing in my friend gave him more than money. This business is great for him and for his relationship to his career. He was floundering after leaving his former profession, and came up with an incredible idea that he was capable of executing. He just needed capital. The change in him has been incredible to see.
Even if I end up writing off this investment, my money is worth what it can do to make the world better. One person at a time.
Have you invested as a silent partner?