Should I put as much as an LP (100K) directly in my first close of €1M (20% of target final close of €5M) instead of the standard 1/2% GP commitment (20k on 1M) because if I fail to raise beyond my 1st close of €1M I will not have in his view enough skin in the game?
Community Member
You are expected to contribute 1% of the target fund size as your GP commit. Tell the LP that you are following the standard protocol, and do not let them bully you around. If they want to join the closing great. If they want to push you around for a small amount of money, then you don't need them in the close.
*Your time is too valuable. You should not even be engaging in these conversations with anyone investing less than $1 MM.*