The LP Side Letter Playbook for $250K Investors
Most accredited investors assume side letters are reserved for pension funds writing $50 million checks. That assumption costs you real rights. ILPA Principles 3.0, published in June 2019, explicitly
Excuse Rights in Private Equity Explained: When an LP Can Opt Out of a Deal and Why GPs Hate Them
An excuse right is a clause in a private equity fund's limited partnership agreement that lets a specific limited partner (LP) sit out one deal, without penalty, when that deal conflicts with the LP's
Side Letters Are Where Weak Fund Economics Go to Die.
Side Letters Are Where Weak Fund Economics Go to Die. Most managers think fund risk shows up when a portfolio company misses a quarter or a capital call gets messy. A lot of the real damage starts
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...