We're not a big fund ($150M AUM, including SPVs...
I wanted to create a thread about the common reasons why we reject LP money.
1/ As an emerging manager, it's super hard to say NO to money--especially when we first started; but at the same time, LP relationships are 10+ years per fund! You're gonna grow old with these folks, so we gotta like you and agree on values.
The list of automatic NOs:
...
4/ THE LP TRIES TO TAKE TOO MUCH ECONOMICS - it's never a good situation when the LP tries to get part of the GP, or preferred economics over your other LPs. This sets a terrible precedent that you'll have the explain to future LPs too, so just avoid it.