She Has Leverage

Investment vehicles and structures

Most-Favored-Nation (MFN) Clause

A most-favored-nation (MFN) clause is a provision that may let an eligible LP elect certain terms granted to other LPs through side letters. The MFN language defines eligibility, timing, commitment-size thresholds, and excluded provisions; it doesn’t automatically give you every better term.

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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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