Previous Post
Next Post
0

Asked by

Community Member

on

in

Fundraising

Is Investing in a Management Company Worth It? Pros, Cons, and How It Works

Steve Bennett mentioned investing in a management company. Is this a thing? How does it work and what are the pros and cons? I know that some friends of mine would be potentially interested I wonder if I should offer them that
1 See in Base
1

Answered by

Community Member

on

We strongly recommend that you do not take investments into the Management Company. The Limited Partner will own your outcomes for decades. Instead, the best practice is to take investment into the General Partner, which is converted in our Stewardship Agreement below. Investors buy a Class V position to take preferred ownership of the carried interest without voting control: Password: Cohort4

Join the Leaders of Venture 2.0

Our graduates are creating disruptive capital with exceptional expertise, ethical investing practices, and exceptional returns. Whether you're launching your first fund or scaling an established firm, VC Lab provides the tools, network, and support needed to succeed in today's venture landscape.

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?