What is the Proper Allocation of Class A and Class V Shares in a General Partner Agreement for LPs, GPs, and Venture Partners?
Hi team does anyone know how to divvy up the shares in the general partner agreement? specifically a) Are class A shares to be given to the respective LPS in proportion to how much contribute ? i.e. assuming 1000000 class A shares with an LP contributing 10% of the fund translating to 100000 shares ? I assume 'Active investor' means the LP.s + the GP commit? b)Do class A shares represent the carry portion of the fund only or the entire fund ? c) Who exactly gets class V shares i.e. what exactly does membership interest mean? c) Assuming a venture partner received 1% from the total 20% carry. how exactly would that be expressed from a share allocation perspective? It might help to have an example to mimic as we craft these agreements unless there is a specific session on this coming up.