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Fund Compliance

A fund manager's friend wishes to join the fund (as another fund manager). However this friend is a Vice President-level employee at XYZ company, where XYZ company is in the same general sector as the fund's thesis. Is there any potential conflict of interest to be concerned about?

Conflict of interest??? I have a long time friend and mentor who I have known for 12 years and trust significantly. He is a technology VP level at United Health Group. He could be interested in the GP with me but he is concerned about conflict of interest being my fund is an AI fund focused on the healthcare sector. Is there any potential conflict of interest to be concerned about here? I do not think there is but please help me clarify. I suppose it would be up to him/UHG but wonder if you all can see any potential conflicts?
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Possibly - conflicts of interest are situation-specific, so it would be best to dig into the details and consult an experienced fund formation specialist attorney as needed.

If, for example, XYZ company has a venture fund and the fund manager's friend is involved in it, a conflict of interest would almost definitely arise. Additionally, if XYZ company is working on competing technology to the fund's portfolio companies, that could also be a conflict.

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