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Capital calls are legal obligations though, right? The "not liking" part is immaterial until the next fundraise and ask is made same LP?
by dopeboy 4y ago
Capital calls are legal obligations though, right? The "not liking" part is immaterial until the next fundraise and ask is made same LP?
- dannyw 4y agoIf you piss off your LPs you won't be fundraising another fund.
- peter422 4y agoCorrect. The fund also isn't going to be returned for 5-10 years, so even if you are making great investments that will have huge returns in 10 years, if you have a bunch of annoyed LPs now, you may still essentially get knocked out of the industry.
- EGreg 4y agoOh please, I've had investors sign legal documents that they'll invest, be legally obligated, and then reneg on those during crypto winter or some other downturn. More than once. The only thing you can rely on is the big ones with a reputation to uphold.