1
Accounting & Taxes

When calling capital, does a VC state whether the called capital will go to investments or to management fees?

Asked by:
Community Member
1
0
0
Dec 05, 2023
Question edited for clarity. 
1 answer
Accepted Answer
Dec 06, 2023
Venture Capital funds typically do not specify whether a capital call is for investment or management fees when requesting funds from Limited Partners (LPs). The capital call is generally used to cover both investments and ongoing expenses such as management fees, legal and accounting fees, and other operational costs. The specific allocation of the funds is determined by the fund manager as per the terms of the Limited Partnership Agreement (LPA).

Log In or Sign Up

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

Apply to VC Lab Cohort 14

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 14