Somerville: LPs will demand fees on invested, not committed, growth capital
Hunter Somerville · Hunter Somerville: Biggest Mistake LPs Make; Deep Dive into Secondary Markets | 20VC #985 · 20VC with Harry Stebbings · Mar 4, 2023 · at 39:02
StepStone Partner Hunter Somerville discusses shifting LP demands regarding venture capital management fee structures in slower market environments.
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“For more branded, more established groups, I think there'll be more of a focus, particularly in the growth funds around invested capital instead of committed just because of the uncertainty of deployment and when that capital goes out the door, I think that will probably be more of the LP focus right now.”
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