- Fundamentals
- Posts
- 🛠️ Investment Fund Key Terms, Part 1
🎉 Happy Friday, funds family!
There are typically three principal fund-related entities:
1️⃣ The Fund itself (the entity that accepts LP capital and makes investments)
2️⃣ The General Partner (the legal control party of the Fund and the party that receives carried interest)
3️⃣ The Management Company (a party that provides investment management services to the Fund and receives management fees)
Most funds follow a somewhat predictable naming convention.
If your “business” name is TIL Capital, for example, your entity names will probably look something like this:
🔹 Fund: TIL Capital Fund I, LP
🔹 GP: TIL Capital Fund I GP, LLC
🔹 ManCo: TIL Capital Management, LLC
But before you form entities, there are a few precautionary steps you should take to make sure your business name is available.
⚠️ Trademark: Run a quick USPTO (trademark) search. This is a good first step to ensure nobody else has a federal trademark regarding a name you want. For a full analysis (including state-level Trademarks), you will want to work with a lawyer.
⚠️ Domain & Digital: Is the domain name available? What about social media handles?
⚠️ Secretary of State: Check with your preferred state of formation (usually Delaware) to see if all the legal entity names are available. You can reserve a name for the future if you’re not ready to form entities today.
All things considered, it’s better to have a somewhat unique name. I can’t tell you how many repeats there are in the industry (peaks, stones, rocks, other things that sound durable).
Any questions?
🗓️ Next up in Part 2, we’ll discuss the “Investment Objective” section of an investment fund’s summary of terms.
Thanks for reading, everyone.
Have a great weekend! 🙌
/ SELF PROMOTION
If you’re a sponsor (GP) raising an investment fund or syndication in private equity, private credit, real estate, or venture capital, we may be a good fit for you. We also represent limited partners (LPs) investing in funds and syndications.
/ JURY TRIAL
How did you like today's post? |
Have you enjoyed this newsletter? Don’t forget 🔗 to share it with your GP, Co-GP, LPs, or anyone else you think might find it valuable!
You can also propose a topic that you would like us to cover! Just reply to this email or submit your suggestions 🔗 here.
⚠️ Note: This newsletter is for informational purposes only and nothing should be considered legal advice. For that, hire a lawyer! I am a lawyer, but not your lawyer (unless I actually am your lawyer because you’ve signed an engagement letter and we’re working together). This newsletter may be considered attorney advertising.
Reply