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Updated over 3 years ago on . Most recent reply

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10
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Steven Gilbert
5
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10
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Partnership Agreement: Pro-Rata GP Equity for Capital Raising

Steven Gilbert
Posted

The general partnership has 500k left to raise (Approx 50% remaining) in a 506 (c) fund. There are three GP's, the capital partner, the operator, and the fundraiser... 

30% equity stake in the GP is reserved for raising a total of $1M, it is pro-rata. Since only 50% is left to raise, the stake up for grabs is 15%. Any member of the GP is allowed to raise the funds needed and will be rewarded with additional equity in the GP at the time of acquisition.

Trying to write a General Partnership Agreement to capture this offering. 

Any tips on what verbiage to use in this part of the agreement? 

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