Investment vehicles and structures

Side Letter

A side letter is a separate agreement between a fund and an LP that grants that LP specified rights or clarifies terms, subject to the limited partnership agreement (LPA) and applicable law. Side letters may address reporting, tax treatment, or co-investment access.

Example: You may negotiate additional reporting in a side letter; whether the fund agrees depends on the negotiation.

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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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