Side Letter Agreement
What a side letter is and when funds can use one.
A side letter is a supplemental agreement between a fund and a specific LP that modifies or clarifies the LPs terms without changing the main fund documents for everyone. Larger or strategic LPs often negotiate them.
Common side-letter terms:
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Fee or carry adjustments
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Reporting or information rights
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Most-favored-nation (MFN) provisions
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Excuse or exclusion rights for certain investments
Side letters can create administrative obligations across LPs, so track them carefully. PaperOS supports generating side letters.
Related Articles:
Limited Partnership Agreement (LPA)
Onboard LPs with an investor portal
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