Previous Post
Next Post
0

Asked by

Community Member

on

in

Fund Operations

What are the common terms for a GP commit loan, including interest rate and payback period?

What are the typical terms (interest rate payback period) for a loan to the GP for the GP commit? I ask out of curiosity not because we are considering this for fund I
1 See in Base
0

Answered by

Community Member

on

A fund manager taking out a loan for the GP commit is not commonly done. More commonly, the fund manager can sell a part of the GP entity for money to use for building the firm and for the GP commit. However this must be done correctly and with the appropriate legal agreements. 

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?