Research on interorganisational collaboration is longstanding however the role leadership plays in such collaborations is often neglected. Using grounded theory, we present a process model of ‘leadership by cavea’ whereby the relationships across organisations involved in a collaborative project were structured according to hierarchies of privilege, determined by the inherent power of ‘bonding’ social capital. While it emerged that cultural capital was a more valuable resource, this was recognised too late in the leadership process for it to make a necessary contribution. Our findings demonstrate that when seeking to practice collaborative leadership across organisations, individuals and the organisations they represent must be aware of the power they hold and wield, even needing to share or relinquish power to ensure that hierarchies of privilege do not hinder efforts to achieve mutual goals.