Submit
Log In Sign Up
Go to Fund Economics
Previous Question Next Question
2
Fund Economics
Management Company

Must I form a management company as a solo GP with no employees, and where I want to distribute management fees directly to the GP?

Asked by:
Community Member
1
0
0
Jul 17, 2023
Decile Base says a ManCo should be formed. However, in Sprint 9, Deliverable 9, the "Distribution" strategy doesn't require the formation of a ManCo. 
1 answer
4
Mike Suprovici
Accepted Answer
Jul 17, 2023
You need to create all 3 entities at the same time, including the ManCo. The distribution strategy referred to in Sprint 9 (https://vcl.to/ManCo-strategy), refers to how the ManCo will be setup to distribute fees and cary to the managing partners and potential employees. 
Thanks Mike
- 
Community Member
Jul 17, 2023 10:29pm
 Add a comment

Log In or Sign Up

Please Log In, or Sign Up to participate in the discussion.

Log In
or
Sign Up

Apply to VC Lab Cohort 16

Get full access to Decile Base and the Decile Hub venture platform for free by joining the VC Lab program.

Apply to VC Lab Cohort 16
Related Questions
If a fund has 2 GPs do they have to jointly contribute 1% of the fund or individually? 0 May 03, 2023 How Can a Solo GP Best Tackle the Key-Person Clause: Is Strong IC the Solution? 0 May 03, 2023 If one uses the Partner fees for some or all of the GP contribution is it taxed first? 0 May 03, 2023 What are Management Fees 0 May 03, 2023 Should I show or promise a lower IRR and then over deliver bigger returns or promise higher IRR to attract LPs and investors. I got a mixed reaction from the different LPs 1 Jun 24, 2024