The typical Venture Capital firm/fund structure, which often includes a Management Company (ManCo), a General Partner (GP), and a Limited Partnership (the Fund), allows for scalability. The ManCo owns the brand and intellectual property, and is where staff and vendors sit. The GP, majority owned by the ManCo, receives the carried interest and is where partners managing only one Fund sit. The Fund is where the limited partners invest into, and where deployments into portfolio companies come out of. This structure allows for the addition of new funds under the same firm, facilitating growth and scalability.
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With the popular Venture Capital firm/fund structure used by Decile Partners, scaling a Venture Capital firm is relatively easy. New Venture Capital funds can be spun up under the same Management Company (requiring only a new General Partner entity and a new Limited Partnership).
The separation between Management Company and General Partner entity also makes it possible to bring in a partner to work on one specific fund, without the requirement that they are also in the Management Company and earning carried interest on all funds under the firm's umbrella.
The separation between Management Company and General Partner entity also makes it possible to bring in a partner to work on one specific fund, without the requirement that they are also in the Management Company and earning carried interest on all funds under the firm's umbrella.
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