Capital Call Terms: What Every First-Time LP Must Check
Capital call mechanics are the clause cluster in a limited partnership agreement (LPA) most first-time limited partners (LPs) skim and most later regret. Read the commitment period, drawdown notice, a
What Is Fund Recapitalization? How GPs Buy Time While Investors Bear the Risk
TL;DR: Fund recapitalization ("recap") is when a general partner (GP) moves assets out of an old, underperforming fund and into a new investment vehicle, resetting the clock and often the capital...
How to Vet a GP-Led Continuation Fund Before You Commit Capital
Roughly half of all secondaries capital now flows into GP-led continuation funds, according to Adams Street Partners , which puts continuation vehicles at close to 50% of its 2026 secondaries...
What Happens When a Limited Partner Defaults on a Capital Call
TL;DR: When a limited partner misses a capital call, the general partner doesn't wait around. Most fund agreements give you a written cure period of roughly 5 business days after notice before you're
Most Favored Nation Clauses in Private Fund Side Letters: Why Big LPs Get Them and Retail Investors Don't
TL;DR: A Most Favored Nation clause lets a large LP swap into better terms that another investor negotiated in the same fund. According to Reuters , the Fifth Circuit vacated the SEC's entire 2023...
Subscription Lines of Credit: How Sub Lines Distort Reported PE/VC Fund IRR
A six-month delay in calling capital can add close to two full percentage points to a private equity fund's reported IRR without changing a single dollar of profit. According to the Kenan...
GP Commitment Explained: How Much Skin Should Your Fund Manager Actually Have in the Game
The 1-5% GP commitment benchmark hides a catch: fee-waived commitments are weaker than cash. Here's where to check the Form ADV, PPM, and LPA before you wire.
Management Company vs. Fund Entity: What Every LP Should Understand About the Two Entities Collecting Your Money
Most limited partners sign a subscription agreement, wire their capital commitment, and assume they are writing a check to "the fund." That assumption is technically correct — but it misses half the picture. By the time...
The LP's Dilemma: When Should You Re-Up With an Underperforming Fund Manager?
Every LP eventually faces this decision: your fund manager's latest vintage is underperforming. Do you re-up for the next fund or walk away? The answer is more nuanced than most investors realize.