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When are LP units redeemable?

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Jan 19, 2024

This answer covers units, shares, etc. 

Top answer:

Limited Partners (LPs) are generally not issued units, shares, or any equivalents for their investment into a VC Fund - this is a common misconception. LPs simply own a percentage of the limited partnership's interests.  By design, the...

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What's the most common way to handle defaulting LPs?

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Nov 29, 2023

Looking at the Cornerstone LPA for example, I find there's multiple avenues a GP could choose to deal with a defaulting LP. What's, based on industry experience, the rationale for choosing one over the other, and which ones are the most common? - ...

Top answer:

Usually, the LP will work to find a buyer for the defaulted position. That is the most common way to manage this. 

 -  Mike Suprovici
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Most effective way to find LPs

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Jul 22, 2023

Is there the most effective way to find LPs or it would be a combination of ways? For example, direct introductions, VC events, etc.

Top answer:

The most effective way of sourcing LPs is via 1st or 2nd degree connections in their network. 

 -  Mike Suprovici
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Conflict on thesis with LPs

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Jul 21, 2023

What should I do if an LP encourages an investment which doesn't align with the investment thesis of the fund?

Top answer:

Limited Partners are 'limited' on purpose. The limitations protect the LP, GP and the fund. If a limited partner were to make an investment decision for the fund, they would loose their limited partner protections.  To answer your quest...

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What are LPs looking for in emerging fund managers in this current market environment?

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Jul 21, 2023

Hi everyone - as we all know, the venture fundraising scene has changed dramatically in the last year or so due to market conditions, global volatility/conflicts, interest rate growth, and so forth, In the future, after I get some experience under...

Top answer:

Assume that everything you hear in the media about Venture Capital is wrong. Journalists are working off bad data and the opinions of a few old VCs that are becoming irrelevant. VC Lab accelerator participants had the best fundraising mo...

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Should there be regular communications between LPs and portfolio companies? What is the dynamic between them?

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May 03, 2023

Should there be regular communications between LPs and portfolio companies? What is the dynamic between them?

Top answer:

The answer is No. That being said, depending on your strategy, you may want to put together a set of LP dinners where the LPs can meet the companies. But just set the expectations straight about the rules of engagement.

 -  Mike Suprovici
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