3 ms·

But when a fund is doing as well as SoftBank is, it would be very odd for an LP to veto an investment.

• Alex3917 8y ago
  > it would be very odd for an LP to veto an investment. Yeah but you usually want to give them the option to soft veto stuff (even if it's not required) by letting them say things like, "I'm skeptical that this is a good idea, but go for it if you think it makes sense." Otherwise at the end of the fund, even if you've posted good returns you don't have any way to show your LPs that you're managing their money differently than how they would have managed it themselves. Managing money is one of those jobs that everyone thinks they can do a good job at themselves (like how everyone wants to be head of product), so no one is willing to pay a premium for it unless you create opportunities to memorialize how you're doing it differently than what they would have done themselves.