All Questions

Please ask the AI Agreement Reviewer, and if you have additional questions, please post them in Base.

Please ask the AI Agreement Reviewer, and if you have additional questions, please post them in Base.

Conceptually, a legal agreement such as a Limited Partnership Agreement is generally created to conform to a specific domicile, such as Delaware - so in a practical sense, a Delaware Fund (with Delaware domiciled entities) is going to ha...

Conceptually, a legal agreement such as a Limited Partnership Agreement is generally created to conform to a specific domicile, such as Delaware - so in a practical sense, a Delaware Fund (with Delaware domiciled entities) is going to have an LPA designed to conform with Delaware (and of course United States) laws. This article goes through some of the cases where Delaware may not necessarily be advantageous - however it's important to note that this will depend on the Fund's specific requirements, as well as the fund managers' (particularly with regard to taxes): https://govclab.com/2023/06/10/delaware-is-the-vc-domicile-of-choice/

The AI Agreement Reviewer is specifically designed for these types of questions - if there are still questions afterwards, please post them in Base. 

The AI Agreement Reviewer is specifically designed for these types of questions - if there are still questions afterwards, please post them in Base. 

Sector, geography, and even general check-sizes are essential parts of a Fund's investment thesis and all have strategic considerations. Any related limitations on the fund managers' discretion in making investments usually derives from ...

Sector, geography, and even general check-sizes are essential parts of a Fund's investment thesis and all have strategic considerations. Any related limitations on the fund managers' discretion in making investments usually derives from said factors, rather than the other way around - and these are typically baked into the Fund's Limited Partnership Agreement. Other restrictions upon a fund manager's discretion in making investments will depend on their leverage, the size of the fund, demands from limited partners (particularly family offices and institutional investors), the domicile of the fund, requirements for investment committees, etc. For small and emerging funds, there are often few, if any, of the above types of restrictions.

Generally speaking, none, unless a limited partner defaults on paying a capital call - in such cases the fund's Limited Partnership Agreement (Cornerstone for Decile clients), usually spells out the fund manager's options in dealing with...

Generally speaking, none, unless a limited partner defaults on paying a capital call - in such cases the fund's Limited Partnership Agreement (Cornerstone for Decile clients), usually spells out the fund manager's options in dealing with a defaulting limited partner's interest in the fund. 

Yes - the Limited Partnership Agreement spells out a limited partner's obligations and spells out the fund manager's options should a limited partner fail to meet said obligations (mostly relating to funding and capital calls). 

Yes - the Limited Partnership Agreement spells out a limited partner's obligations and spells out the fund manager's options should a limited partner fail to meet said obligations (mostly relating to funding and capital calls). 

The Cornerstone LPA template does not currently address handling AI-driven investment decisions.   While regulatory frameworks might change in coming years to possibly account for such situations, at this time it does not seem conceivab...

The Cornerstone LPA template does not currently address handling AI-driven investment decisions.   While regulatory frameworks might change in coming years to possibly account for such situations, at this time it does not seem conceivable that a fund manager can escape ultimate responsibility for sub-optimal investment decisions by saying "your honor, it was the AI, not me". It also seems doubtful that limited partners, at least for now, would not try to hold the fund manager responsible anyways. 

Generally speaking, there are no easy exit options for limited partners should a fund underperform - this is why it's critical for limited partners to carefully evaluate and perform due diligence on any fund managers they intend to have ...

Generally speaking, there are no easy exit options for limited partners should a fund underperform - this is why it's critical for limited partners to carefully evaluate and perform due diligence on any fund managers they intend to have manage their money for a decade or more.   In most cases, secondary sales are also not an easy exit option. 

Generally speaking a venture capital fund must pursue a venture capital strategy, because venture capital funds typically rely on a specific exemption from fully registering with the SEC (to avoid much higher levels of reporting and regu...

Generally speaking a venture capital fund must pursue a venture capital strategy, because venture capital funds typically rely on a specific exemption from fully registering with the SEC (to avoid much higher levels of reporting and regulatory scrutiny). One of the requirements of the venture capital exemption is that investments are generally (directly) made into a company in exchange for equity, which may not be typical in real estate (or really what limited partners think of as "venture capital").  More information about the venture capital exemption can be found here: https://www.strictlybusinesslawblog.com/2018/05/31/the-venture-capital-adviser-exemption-explained/

With respect to the United States of America, there is not a singular exhaustive list of reasons or regulations that can lead to a country being on a designated list - there are many agencies that enforce such things, as well as orders a...

With respect to the United States of America, there is not a singular exhaustive list of reasons or regulations that can lead to a country being on a designated list - there are many agencies that enforce such things, as well as orders and guidance from the Executive branch of the government. Banking institutions also have their own compliance policies regarding countries and/or citizens they will not do business with. Reasons would generally involve money laundering, terrorism, fraud, etc. - and what might happen to citizens of any country depends on many factors. You may find this link generally helpful: https://www.dowjones.com/professional/risk/glossary/anti-money-laundering/importance-aml-policies/

"Specially Designated Nationals and Blocked persons" listed on a compliance policies are generally derived from governmental watchlists - each government will have its own criteria, though these overlap to an extent. It's important to ke...

"Specially Designated Nationals and Blocked persons" listed on a compliance policies are generally derived from governmental watchlists - each government will have its own criteria, though these overlap to an extent. It's important to keep in mind that these lists are constantly evolving with a country's particular requirements as well as global events. Anti-Money Laundering and Know Your Customer systems and vendors will generally ensure that they check for such individuals in particular, and keep such lists up to date for their internal usage. Note that just because an individual is not specifically listed does not mean they are automatically clear with respect to Anti-Money Laundering.