Anchor LP
topic on 1 show · 4 statements across 3 episodes
4 statements about Anchor LP, every show
Rob Go: Emerging VCs Should Refuse Anchor LP Requests for Special Economics
“I wouldn't do it. I think it's a sign of strength not to take that deal. It's not very typical in venture, I would say. I, I've heard it's more common in private equity or hedge funds. And so if you're talking to an LP that's very used to anchoring hedge funds…”
Rob Go: Avoid Letting a Single LP Constitute 50% of a Fund
“I think 50% is kind of extreme. I think it's probably unusual that an LP would be willing to do that without some special controls or economics that I would recommend probably steering away from for the most part.”
Selling management company equity to anchor LPs creates long-term GP resentment
“Giving up a piece of your management company, it makes that LP very expensive. And ultimately, I think, as a GP, you come to resent that.”
Toney: Anchor LPs often negotiate minimum closing thresholds into LPAs
“Often if there's an anchor LP, they anchor themselves might actually negotiate into the limited partner agreement, the LPA, that a close cannot happen until a particular threshold relative to the target size has been met or absolute number.”