The new SEC rules limit preferential treatment in Side Letters (Section 8.3). Historically, institutional LPs negotiated preferential terms via Side Letters, so I want to know if they’re now pushing back or finding workarounds. I also want to understand how biotech/health funds are handling regulatory carve-outs that LPs previously included in Side Letters.
Side letters are still common and allowed by the SEC rules. Ethical managers typically disclose these side-letters because the terms can often affect the performance of the fund.
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.
