99/1 Rule
Nov 08
Legal, Private Equity, Venture Capital 99/1 Rule, Committed Capital, GPs, LPs, Rule of Thumb No Comments
For a myriad of complex legal reasons, Limited Partners require General Partners to contribute their own capital into their venture capital fund. While this amount can vary, the vast majority of the time GPs need to contribute 1% of the committed capital with LPs contributing the remaining 99%. Thus the 99/1 rule.