All Questions

There is not, generally speaking, a singular set of best practices to evaluate how easily a Limited Partnership Agreement (or indeed any other legal agreement), can be updated to meet the requirements of a newly promulgated policy.  Fac...

There is not, generally speaking, a singular set of best practices to evaluate how easily a Limited Partnership Agreement (or indeed any other legal agreement), can be updated to meet the requirements of a newly promulgated policy.  Factors to take into consideration will depend on: • Jurisdiction of the fund and its entities; • Structure of the fund and its entities; • Statutes governing said entities; • How an LPA is drafted, and whether it allows for flexibility or classically spells out every single contingency; • Factoring in the above, what mechanisms (if any) are baked into an LPA to make substantive (not administrative) changes; • The spirit and text of the newly promulgated regulatory framework (i.e. are there strict requirements that are spelled out?); • Sophistication level of fund managers and limited partners; • And more. Typically a full renegotiation of an LPA is not required though, as the general practice with legal agreements is to apply all of the above only to provisions that may be affected, where possible.  TL:DR - it will be a qualitative evaluation every time, and if there is any best practice, it is to consult experienced regulatory experts - this is not the space in which to attempt DIY or to get "creative". 

There are two approaches to drafting legal agreements. One way is for the law firms to make these documents extremely prescriptive resulting in 100s of pages of legal language. A second and more streamlined approach is to cover basic con...

There are two approaches to drafting legal agreements. One way is for the law firms to make these documents extremely prescriptive resulting in 100s of pages of legal language. A second and more streamlined approach is to cover basic concepts while making everything else implied. Good examples of this second approach are the SAFE and the Cornerstone LPA. It's just not necessary to go into this level of detail for funds that are less then $50m because any type of lawsuits would be fatal to the fund and the LPs as a result. Bigger funds will have a Private Placement Memorandum to specify all the things that can go wrong, and since there is so much more capital on the line, the additional fund expenses are worth it. Now, to answer you question more directly - since the fund manager is a fiduciary and is also indemnified from damages except for Malfeasance, this type of clause is not necessary.  

There is no concept of GP commit in the Start Fund product. So, there is no expected amount. 

There is no concept of GP commit in the Start Fund product. So, there is no expected amount. 

Yes, no problem. You can sign the agreement when you're ready to launch your Start Fund.

Yes, no problem. You can sign the agreement when you're ready to launch your Start Fund.

No. Start Fund can not accept European LPs due to the strict general solicitation and licensing requirements. Limited partners in the European Union will be blocked and can not be accepted into Start Funds.

No. Start Fund can not accept European LPs due to the strict general solicitation and licensing requirements. Limited partners in the European Union will be blocked and can not be accepted into Start Funds.

Fundraising from limited partners in various geographies is dictated by the regulations in each such geography - it's extremely important to understand the regulations both in the geography a Fund is domiciled in and the geography a pros...

Fundraising from limited partners in various geographies is dictated by the regulations in each such geography - it's extremely important to understand the regulations both in the geography a Fund is domiciled in and the geography a prospective LP is located in. You can find more resources here: https://govclab.com/resources/ Some geographies are extremely strict, to the point of potential jail time for violating regulations - so it's especially important to understand what is permissible in talking to prospective limited partners. Understanding what generally constitutes "General Solicitation" is also critical. 

You must always secure an warm introduction to each potential-limited partner. Avoid cold emailing limited partners.

You must always secure an warm introduction to each potential-limited partner. Avoid cold emailing limited partners.