What Discounts Should Be Offered to Early LPs: Management Fee or Carry Discount and How Much?
What kind of discounts make sense for key early LPs? For example if I have a good friend and multi-year partner who wants to come in and can put in 3-5% of the fund and he asks for a discount to go at higher end of that. My fees are typical 2/20. Should I offer management fee discount or carry discount? How much is reasonable?