Paige Finn DohertyFounding Partner, Behind Genius · Founding Partner at Behind Genius Ventures

What Innovative Fund Models Exist for Fund Managers? #shorts

20 Jun 2022 · 1 min

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Two fund managers discuss new structures giving GPs more flexibility. One model lets general partners withdraw around $1 million from the fund to ease financial pressure during fundraising. Arlan Hamilton's Backstage Capital pioneered using management capital to hire and expand teams.

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So now it's becoming more common to provide either GP liquidity where the GP can take maybe a million dollars off the table so they're not, you know, worried about traveling or like the the costs that are associated with fundraising and things like that. Or you can use it as management capital to build your team. So I think that that's like a very innovative model. I I believe Arlen Hamilton did a similar. move with Backstage Capital as well. And there's, there's been changing regulations with Reg CF or like the crowdfunding regulations that allow these innovative structures to be seen.
Yeah, definitely wanna give a shout out to Arlan and, and Backstage Capital. It was not even on our radar at all. We saw them do it and I was like, that's awesome. Maybe we should do that. And then I tweeted out like an Airtable form and I was like, hey, if we did this, would you be interested? You know, fill out this form. And we got like a ton of interest. And so I was like, okay, we're gonna do this now.