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Fund Operations

How do fund expenses work with the fund expense cap as set in the LPA?

We have budgeted 100k for fund expenses from our LPs. When we do the call for 2.5M do we also call for the fund expenses? How much do we call? 10% of the 100k since it’s 10% of the fund? Or do we call the full 100k and then not charge that group of investors in the future?
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Answered by

Haw Kuo

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Generally speaking, fund expenses will be allocated from the capital called from the limited partners (there is no separate call in any way) - please read this for more information:

https://govclab.com/2022/11/07/managing-fund-expenses-for-venture-capitalists/

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