Hello! Does anyone know what is the extra information that should be disclosed if an LP exceeds the 25% threshold of the fund size in commitments?
May 03, 2023
Everything is defined in the LPA. As a rule, you don’t want any one LP to own 25% or greater, otherwise they control the fund. You could build in custom protections.
You can read a sample and simple LPA with the Cornerstone for some examples on how the control provisions work with the Majority in Interest of the Limited Partners.