The LP Rule With No Good Reason
“We can't be more than 10% of a fund and we have to write a $10 million check... I don't have a lot of respect for that kind of decision-making process.”
Transcript
Let me think about leather justice warrior comment to make this time for LP. Please. Yeah, please. One thing we know exists in the LP community is this sort of rule. We can't be more than 10% of a fund and we have to write a $10 million check, right? Which essentially means that you have to have a hunt. Like that's actually something that emerged. Actually, that's one piece of advice for emerging managers is think
hard if you want to raise 50 or you want to raise 150 because sometimes raising 150 is easier for that reason. But on the LP side, guys, why does that rule make sense? Is that basically so that you can hide behind other people? And I think the answer is yes. I
think a lot of the LP community or people happy in a warm seat that just don't want to rock the boat and have defensibility. I don't have a lot of respect for that kind of decision-making