What are the most common alterations to the traditional 2/20 compensation model seen in healthcare funds?

Asked by

Community Member

Mar 29, 2024

What are the most common alterations to the traditional 2/20 compensation model seen in healthcare funds?

I asked Decile Base the following question and it responded, "I can't confidently answer this question, please start a new Decile Base post to have this question answered." Below is my question.

What are the most common alterations to the traditional 2/20 compensation model seen in healthcare funds?

2 See in Base

Answered by

Travis Giggy

Mar 29, 2024

Hi Shana, I'm going to move your question over to the "General VC Questions" category.

Answered by

Mike Suprovici

Mar 29, 2024

LPs are most familiar with the 2/20 model. If you deviate from this, you will struggle to raise money, especially as an emerging manager. There are many areas to innovate as an emerging manager. Innovating on the standard fee model is not one of them because it will create a lot friction with LPs.

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