Launch an institutional-grade VC fund in a day with no up front costs. 
Meet Start Fund
Previous Post
Next Post
0

Asked by

Community Member

on

in

Fund Operations

If choosing to set a percentage for the Recycled Amount in the LPA, can we say "up to x%" or will we be required to recycle the exact percentage we choose to commit?

Can we say "up to x%" or will we be required to recycle the exact percentage we choose to commit?
2 See in Base
0

Answered by

Community Member

on

“Recycled Amount” shall mean the product derived from multiplying a Limited Partner’s Capital Commitment by the following percentage of such Limited Partner’s Capital Commitment, such that additional investments may be made by the Fund: [0%] [10%] [20%] By definition, it is "up to" the percentage of the recycling. Funds almost never call the total amount of capital of the fund.
1

Answered by

Community Member

on

The Recycle Amount percentage, as set forth in the Cornerstone LPA, will be the upper limit of what is able to be recycled and deployed - however a fund manager is not required to deploy up to that exact Recycled Amount percentage (and in fact this would be very unusual). 

Join VC Lab

VC Lab, the leading venture capital accelerator, empowers new and emerging managers worldwide to close ethical, high-performing funds in under six months. The program provides cutting-edge tools, expert mentorship, and a global network to raise more money in less time. Apply if you want to build a meaningful venture capital firm.

Apply Now
How do I start raising my first venture fund? What are the key considerations for becoming a Limited Partner?
How can I improve my emerging manager firm's deal flow? What strategies help attract institutional LPs?
How do I build a compelling investment thesis? What are best practices for portfolio management?
How can I differentiate my VC firm in a crowded market? What are the typical fund terms for emerging managers?