- Cornerstone generally contemplates a **GP commitment as a fund-specific economic term**, commonly sized by the manager, with market convention often around **1% to 2%** of fund size, though emerging managers may set less if it is still meaningful.
- **Yes, structurally it can be funded through a management fee waiver or offset rather than all-cash.** That is common, but it should be **clearly disclosed**.
- Important caveat:
- many LPs see a **cash-funded commit** as a stronger alignment signal
- a fully fee-waived commit can be viewed as weaker
- tax treatment depends on structure and jurisdiction, so counsel should confirm it

References:
- https://decilegroup.com/articles/gp-commit
- https://decilehub.com/base/1-general_questions/21499-how-common-is-it-that-gps-contribute-their-capital-from-management-fees-rather-than-cash-to-meet-their-fund-participation-obligation-what-about-first-time-partners-that-might-not-have-the-cash