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Problem is LPs need you to spend your money reasonable fast so they can have you raise they next round, so they can mark up their investment, and use those pape
by mrnobody_67 8y ago
Problem is LPs need you to spend your money reasonable fast so they can have you raise they next round, so they can mark up their investment, and use those paper gain numbers to raise a new fund every 3-4 years to increase assets under management that they can collect 2-3%/year for 10 years on.
- gumby 8y agoI think you mean the GPs need this -- the LPs want actual valuation increases at distribution time. It's the GPs who raise the funds and get the 2&20.