easy · Private Equity pe-core
Alpha Fund L.P. has a 'Key Person' clause naming three founding partners.
If two of the three partners leave to start a competing firm, what is the most likely immediate contractual consequence according to a standard Limited Partnership Agreement (LPA)?
- All existing portfolio companies must be liquidated by the GP within 180 days.
- The fund's investment period is automatically suspended, and LPs must vote to restart it.
- The management fee is immediately cut to zero fund-wide until new qualified partners are hired.
- The GP is automatically removed from the fund and replaced by the largest remaining Limited Partner.
Sign up free to see the explanation and track your rank →
More Private Equity pe-core practice
- If the GP receives a 20% carry on the profit from Deal A immediately, and the fund eventua
- Following the investment, what is the investor's ownership percentage in the company, assu
- What is the Interest Coverage Ratio?
- A private equity firm is calculating a 'Public Market Equiva… — If the KS-PME score is 1.1
- A sponsor provides an 'Equity Cure' to a portfolio company. What is the standard purpose o
- What is the new effective conversion price for the growth equity investor?
- Which company will report a higher 'Gross Margin' and a higher ending 'Inventory' value on
- What is the company's Interest Coverage Ratio?