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How does the GP's discretion to force an LP's withdrawal due to a "Material Adverse Effect" (Section 5.5) create a power imbalance?

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The General Partner owes the Fund fiduciary duties. If an LP's participation in the Fund creates a Material Adverse Effect, the GP must have the ability to force said LP's withdrawal or take any other measures needed, as outlined in the LPA. 

For example, if an LP of a US domiciled fund is found to have sourced their funds from a country the US government has sanctioned, the GP must have this capability as otherwise the fund itself may be exposed to regulatory enforcement, bank seizure of assets, fines, penalties, etc. 

In other words, this is commonplace and expected, and not generally characterized as creating any sort of "power imbalance" - LPs are, after all...limited partners. 

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