All Questions

Generally speaking, ERAs must file the Form ADV within 60 calendar days of becoming an ERA - thus they generally must file within 60 calendar days of a fund's first closing, in most cases. Please see the following (Item 13 in particular...

Generally speaking, ERAs must file the Form ADV within 60 calendar days of becoming an ERA - thus they generally must file within 60 calendar days of a fund's first closing, in most cases. Please see the following (Item 13 in particular) for more information: https://www.sec.gov/about/forms/formadv-instructions.pdf

Family offices care a lot about deal flow. You will likely have pro-rata opportunities that the fund will not be able to fill. Build your pitch narrative around the fact that they will have opportunity to double down on some of your best...

Family offices care a lot about deal flow. You will likely have pro-rata opportunities that the fund will not be able to fill. Build your pitch narrative around the fact that they will have opportunity to double down on some of your best deals.

Do not register any entities until you’re ready to start closing. This is a major mistake. MAJOR. All 3 entities will need very specific operating agreements and they need to have relationships. It will be so hard for you to fix this mi...

Do not register any entities until you’re ready to start closing. This is a major mistake. MAJOR. All 3 entities will need very specific operating agreements and they need to have relationships. It will be so hard for you to fix this mistake that you will likely need to throw it way and start from scratch.

Just say that you will provide standard quarterly reporting when the fund is set up with a quantitative analysis of the returns and qualitative updates on the portfolio.

Just say that you will provide standard quarterly reporting when the fund is set up with a quantitative analysis of the returns and qualitative updates on the portfolio.

1. it should be similar, but there are other sections that are important as well that are not in your deck, such as the fund rules section 2. it gives a quick snapshot of the fund, similar to an executive summary. it does not replace the...

1. it should be similar, but there are other sections that are important as well that are not in your deck, such as the fund rules section 2. it gives a quick snapshot of the fund, similar to an executive summary. it does not replace the PPM

It appears that the limited partner is asking for there to be a penalty or catch-up fee for late entrants into the fund. You can simply response that you are not adding any penalties or catch up fees, as you your intention is to close qu...

It appears that the limited partner is asking for there to be a penalty or catch-up fee for late entrants into the fund. You can simply response that you are not adding any penalties or catch up fees, as you your intention is to close quickly and keep fund admin complexity to a minimum. With most smaller funds the costs of administering such programs can be high, and, worse, the programs scare aware qualified LPs. In general, we strongly discourage this until you are an established fund manager with top returns.

This is called a Seed investment. 

This is called a Seed investment. 

This is highly dependent on the strategy. First pick your strategy, then the model.

This is highly dependent on the strategy. First pick your strategy, then the model.

The majority of these types of events are scams. 

The majority of these types of events are scams. 

The General Partnership Entity manages the carry and is governed by the Stewardship agreement that you are referring to. The Limited Partnership Entity is where the LPs invest and it allocates the carry to the General Partnership Entity....

The General Partnership Entity manages the carry and is governed by the Stewardship agreement that you are referring to. The Limited Partnership Entity is where the LPs invest and it allocates the carry to the General Partnership Entity. The Limited Partnership Entity is governed by the Cornerstone LPA. Class V shares are typically reserved for investors in the General Partnership Entity. So, if you have an investor that wants to make an investment in the General Partnership Entity, you would use Class V shares. Class A are for everyone else (GPs, VPs etc..)

This is another example of confusing venture capital terminology. They are often the same thing. Venture Investors can refer to Venture Partners that help with investing, primarily.

This is another example of confusing venture capital terminology. They are often the same thing. Venture Investors can refer to Venture Partners that help with investing, primarily.

We recommend that you raise the minimum between closing as your forcing function. You may start with $25K and increase it to $500K.

We recommend that you raise the minimum between closing as your forcing function. You may start with $25K and increase it to $500K.

If you have a Hurdle Rate of 4%, then you need to get 104% returned before you get any carried interest. Since your primary compensation is through carry, this is really unfair to the GP, especially in smaller funds. You’re already maki...

If you have a Hurdle Rate of 4%, then you need to get 104% returned before you get any carried interest. Since your primary compensation is through carry, this is really unfair to the GP, especially in smaller funds. You’re already making a big sacrifice due to the small fund size etc. It’s just not fair. Also, it doesn’t really de-risk the fund that much, especially when it’s small, so it’s not that beneficial.

Distributions are usually done upon exits and the Fund's LPA usually specifies the details. 

Distributions are usually done upon exits and the Fund's LPA usually specifies the details. 

The active investment period is normally between 2 and 4 years. Read the Cornerstone LPA for how these terms are set.

The active investment period is normally between 2 and 4 years. Read the Cornerstone LPA for how these terms are set.

There are 10 years (usually) of annual Managment Fees, so 10 times 2% is 20%.

There are 10 years (usually) of annual Managment Fees, so 10 times 2% is 20%.

yes they can

yes they can

LPs typically expect that GPs contribute 1% to the fund. Think of it like skin in the game. This can be done via cash, or, via equity from a warehouse investment. So, for example, if you have equity in company, you can contribute that i...

LPs typically expect that GPs contribute 1% to the fund. Think of it like skin in the game. This can be done via cash, or, via equity from a warehouse investment. So, for example, if you have equity in company, you can contribute that instead of cash to make up the 1%.

It depends on the audience and the secret sauce of the thesis. 

It depends on the audience and the secret sauce of the thesis.