Shu-Yi Oei & Diane M. Ring

The New “Human Equity” Transactions

Are we entering an era where investors can acquire an equity stake in an individual?  A new family of marketplace transactions provides individuals with financing for business, entrepreneurship, education, or diversification purposes in return for the individual’s promise to pay a percentage of her income for a period of years. This Essay briefly discusses the legal, regulatory, and public policy issues these new transactions raise, and proposes an analytical approach to grappling with such issues.