Ask AI
Log In Sign Up
Go to Venture Legal
Previous Question Next Question
0
Venture Legal

What Extra Information Should Be Disclosed if an LP Exceeds 25% Threshold of Fund Size in Commitments?

Asked by:
Community Member
1
0
May 03, 2023
Hello! Does anyone know what is the extra information that should be disclosed if an LP exceeds the 25% threshold of the fund size in commitments?
1 answer
0
Community Member
Accepted Answer
May 03, 2023
Everything is defined in the LPA. As a rule, you don’t want any one LP to own 25% or greater, otherwise they control the fund. You could build in custom protections. You can read a sample and simple LPA with the Cornerstone for some examples on how the control provisions work with the Majority in Interest of the Limited Partners.
Add a comment

Log In or Sign Up

Please Log In, or Sign Up to participate in the discussion.

Log In
or
Sign Up

Apply to VC Lab Cohort 17

Get full access to Decile Base and the Decile Hub venture platform for free by joining the VC Lab program.

Apply to VC Lab Cohort 17
Related Questions
What is the Ideal Amount of Information to Share with LPs Without Compromising Fund Strategy? 0 May 03, 2023 In our pitch decks do we mention the % of LP commitments? 1 May 03, 2023 Do VCs typically disclose investment amount they are making in companies to their LPs? 0 May 03, 2023 What materials should be sent to a potential LP via email aside from the investment deck? 0 May 03, 2023 Is the mechanism and the conditions under which an SPV could be set up (ex. pro rata share upon a follow-on round) outlined in the LPA? 1 Feb 22, 2025

Decile Group Inc. uses cookies for our website to function properly; some are optional and help deliver a personalized and enhanced experience. By clicking "Allow all", you consent to store cookies on your device in accordance with our cookie policy. You can reject all non-essential processing by choosing to accept only necessary cookies. To learn more check Cookie Policy