Cayman Update: Private Funds Law 2020 Requires VCs to Register

Update: On July 7, 2020, the Cayman Islands Government amended the Private Funds Law 2020 and expanded the definition of a “private fund”.  As a consequence, a few types of entities (such as “single investment funds” and “no fee no carry funds”) that were expected to be excluded from the […]

Primer: Management Fees in Venture Capital Funds

We are often asked about the “market” rate for management fees in actively managed venture capital funds.  This primer discusses mainstream venture capital funds, so to speak.  If your fund is in the venture space but has special attributes (such as being a secondaries fund, a very small micro-fund, a […]

Primer: LP Governance Rights in Venture Capital Funds

Venture capital funds are closed-ended, long duration blind pools.  In the many years following closing, the fund manager is permitted to operate and invest the fund in its discretion as long as it stays within some limited guidelines codified at inception in the partnership agreement.  But, what happens if circumstances […]

CFIUS Reform: Implications of FIRRMA for Fund Managers

After long debate concerning the need to reform the Committee on Foreign Investment in the United States (“CFIUS”) to address evolving national security threats and emerging technologies, the Foreign Investment Risk Review Modernization Act (“FIRRMA”) became law on August 13, 2018. FIRRMA expands CFIUS’s powers to review investments by “foreign […]

Primer: Carried Interest in Venture Capital Funds

We are often asked about the prevalent market options for structuring carried interest provisions in venture capital funds.  In this post, we’ll speak of mainstream venture capital funds, so to speak.  Terms differ in special situations, like co-investment funds, top-up funds, funds that are wholly or partially funds-of-funds, and so […]