Does an LP's Inquiry About Sidecar Syndicates Imply Our Fund's Involvement in Organizing Them?
When an LP asks if there is room for sidecar syndicates does this imply that our fund would be helping organize the syndicate?
They are usually asking you if you would organize a syndicate in the future. That being said, you should clarify this.
Offering the opportunity for your LPs to invest along side your fund (if there is additional room in the round) or in following rounds can provide additional value to both your LPs and portfolio companies. In these cases, you may want to consider an SPV to roll up these investments and take carry. This should be clarified in advance.