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Are there any drawbacks to accepting LP interest for smaller tickets?

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May 03, 2023
Are there any drawbacks to accepting LP interest for smaller tickets?
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Community Member
Accepted Answer
May 03, 2023
Most jurisdictions have limits on the number of Limited Partners, and they also have accreditation standards for investing LPs. As a rule of thumb, you don't want a lot of LPs to manage, so you want to try and limit the number to 50, maybe 75. Now, you may want some strategic investors at the $50K level, so you make the first close minimum $50K, let in a few strategic LPs, and then raise the minimum to $100K or $250K.

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