Towards the end of your post you say he'll be managing employees, yet it sounds like you don't have any, and he doesn't have any experience managing staff anyway. Managing people isn't something that you just pick up on the job.
To be honest, it sounds like you're looking to get a mate involved...just because he's your mate. Don't get me wrong, that CAN work (my co-founder is a friend, but he's also the designer "ying" to my developer "yang"). I'd just be concerned that your mate doesn't appear to have any relevant skills to your business beyond being good with money a being good listener. These may be important things in the long run, but when you're trying to get a product to market, you need your co-founder doing everything that you can't.
I don't mean to be an alarmist, and I may be making some incorrect assumptions...but I wouldn't be offering any equity to someone who isn't going to CREATE equity.