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^ This Good graphic on this page that explains it nicely: https://www.quora.com/What-is-the-difference-between-limited-partners-LPs-and-general-partners-GPs-in

by mbesto 8y ago

^ This Good graphic on this page that explains it nicely: https://www.quora.com/What-is-the-difference-between-limited-partners-LPs-and-general-partners-GPs-in-the-venture-capital-business https://www.quora.com/What-is-the-difference-between-limited... Given that the fund is so highly concentrated by one LP, there is a (chilling) hypothetical situation that they (KSA wealth fund) could overstep the traditional bounds of a LP and taking more controlling interests of portfolio companies. This is a new territory where little precedence has been set because (1) we're dealing with international money (2) the size of the fund (3) the funding concentration.

jacquesm 8y ago
Only if the fund itself already has a controlling interest in the portfolio companies. Otherwise you can just tell them to take a hike.
- mbesto 8y ago
  Which is precisely the speculation of the Vision Fund: http://fortune.com/2018/10/10/softbank-visionfund-wework-majority-stake/ http://fortune.com/2018/10/10/softbank-visionfund-wework-maj... (and why I mentioned it)
  - jacquesm 8y ago
    Interesting. 51% of 51% would allow you to control a company where another party holds 49%, even if you invested much less.