She Has Leverage

Fund structure and roles

Limited Partner (LP)

A limited partner (LP) is an investor who commits capital to a fund but generally doesn’t make its day-to-day investment decisions. As an LP, your liability is generally limited, subject to applicable law and the fund documents, and you remain responsible for obligations such as unfunded commitments.

Example: If you commit $25,000 to a venture fund as a limited partner, the fund can call that commitment according to its documents.

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Knowing the language helps you follow the conversation. Knowing what to ask is how you participate in it.

Understanding the terms is a first step. The Aligned Capital Program uses them to teach you how to evaluate a fund and prepare the questions to ask its manager.

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