Succession Planning and Firm Continuity for VC Funds
LPs now demand succession plans, but most VC firms still lack them—creating a dangerous mismatch.
Elise Beck
Section
7 stories in Fund Management.
LPs now demand succession plans, but most VC firms still lack them—creating a dangerous mismatch.
The limited partnership structure itself guarantees GPs and LPs want different things.
How GPs decide what to reserve for existing companies versus new deals.
Carry structures determine GP payouts and create disputes inside PE firms.
VCs track portfolio data constantly to catch problems before they become write-offs.
Emerging fund managers must coordinate five operational disciplines or risk LP crises later.
Get the legal and structural decisions right before you raise a single dollar.