How should a portfolio company's valuation be updated when there there is a discount in the deal terms?
Question reformulated for clarity, but of course let us know if it does not address the original question.
Question reformulated for clarity, but of course let us know if it does not address the original question.
Question reformulated for clarity, but of course let us know if it does not address the original question.
I believe they are often called ASAs (Advance Subscription Agreements) in the UK. Are there any fundamental differences in how they work in the UK and US?
I am going to add sensitive confidential data to Decile Hub. How can I be sure it will be not accessible for third parties through a leakage on the Decile Hub end? Does the Decile Hub system pass any cybersecurity checks and audits? Is there any certification?
Does Decile Hub automatically update valuations across funds invested in the same company? Ie: if fund A using Decile Hub as an admin platform updates the valuation of company A to X, will Decile Hub prompt fund B to update company A's valuation to X or, perhaps, automatically update the valuation? If it would it be a bad idea to standardize the valuation of a company across investors on the platform, why?
An LP has already signed my LPA and is bringing others into my fund as investors. He shared that a condition of bringing others is that I be full-time over the fund since this is the only way one can really run a successful venture. I agree, however I require more than my management fee provides for living expenses since Fund 1 is small. Even if I oversubscribe, it wont get us to the amount I need. My question: Investor is willing to provide me cash now for a percentage of carry as a one time payment to help support my transition to VC full time. He suggested I valuate a percentage with rationale and he will help me raise the capital for the GP carry (NOTE: this is not Management Company carry, ONLY fund 1 GP carry and has been clarified with investor. Greatly appreciate guidance on how to valuate this.
Hey all, How to create a capital call, when I do not see it in the top menu of the capital accounts? Thank you all!
It would be great to hear about the options for startups.
Looking at the Cornerstone LPA for example, I find there's multiple avenues a GP could choose to deal with a defaulting LP. What's, based on industry experience, the rationale for choosing one over the other, and which ones are the most common? - Removing the LP from the partnership by either considering their interest forfeited or selling it at a discount - Using distributions to cover capital calls - Pursuing legal action And when does it make sense for the GP to waive the interest? I imagine many of these decisions are down to the individual relationship with the LP, so I'd love to know the common/best practice here.
In the Cornerstone LPA, clause 3.2 mentions portfolio liquidity results with respect to 'non-investments'. Can you please explain what non-investments may be, and how their yield portfolio liquidity results?