1
Fund Operations

What is your advice on best practices in setting up your fund's LPAC?

Asked by:
Community Member
1
0
0
Aug 30, 2023
1 answer
Haw Kuo
Accepted Answer
Aug 30, 2023
As a general matter, here are some best practices in setting up a fund's LPAC:
  • Check the LPA or governing document that describes the LPAC appointment process and details the LPAC's particulars;
  • Ensure that LPAC members are people that the fund manager really trusts, as depending on the LPA, LPAC members may have quite a bit of power; 
  • Keep the LPAC as small as practicable, with the proviso that the LPAC should have an odd number of members to prevent any potential deadlock situations;
  • For smaller funds, 1 to 3 members are ideal. 
*Given the SEC's recent rules, the LPAC should not be used as an Investment Committee, nor should it vote on matters regarding conflicts of interest. More information can be found here: https://govclab.com/2023/08/25/sec-private-fund-adviser-reforms/

Log In

Please Log In with your Decile Hub credentials.

Log In

Apply to VC Lab Cohort 13

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 13