African fund managers experienced difficulty in convincing global limited partners (LPs) to invest in the region.
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The managers, like the limited partners, are at full risk for all the investments made.
The other 80%, of course, goes to the firm's limited partners who put up the capital.
After all, that decade ended with venture capital firms and their limited partners flushed with profit.
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The consensus then (among limited partners at least) was that the venture business does not scale well.
Struggling with poor performance, VCs have taken notice, adding Operating Partners to their General and Limited Partners.
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Limited partners in the fund had pushed for a change in the team, Silicon Dragon sources said.
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Since there are a limited number of exits, limited partners have been reticent to put money back in.
Most often, it is 80% of the gain to the limited partners and 20% to the general partner.
Venrock never sells stock in an initial offering, instead passing on the holdings to limited partners a year or so afterward.
Mayfield has longstanding relationships with limited partners which helps raise funds quickly, says Navin Chaddha, managing director at Mayfield.
Instead of scratching back his assets under management, Icahn cut himself loose from the burden of limited partners entirely.
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The interesting game has now shifted one level up, to the relationship between VC firms and their Limited Partners.
Since then Kinder has raised the dividend to limited partners three more times.
Previously the funds waited until outside investors (the limited partners) were in the black before collecting their own cut.
One of the limited partners then sued one of the general partners, contending that he was liable for the losses.
If Hansen's group became limited partners in the Kings the sale would still need approval from the Board of Governors.
First, they receive annual management fees, usually 2% of the total dollars committed to the fund by the limited partners.
As a result, capital providers can generate returns for their limited partners without putting pressure on portfolio companies to exit.
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So Wilpon will be taking on limited partners, though he says he will not treat them in the imperious Steinbrenner manner.
The big payout comes from any profit, which venture investors take a 20% cut and the limited partners keep the rest.
But at that point, it's also harder to attain the multiples the firm's investors, or limited partners, have grown used to.
The general partner keeps 50 cents of every dollar of earnings after limited partners get 46.75 cents a share per quarter.
These partnerships may be structured in any way imaginable, often incorporating provisions that are not at all favorable to the limited partners.
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The carried interest is paid when companies become liquid, only after the limited partners have been paid back all of their investment.
Our results are based on extensive reporting and surveys sent to 1, 000 professionals, including VCs, angels, lawyers, bankers, recruiters and limited partners.
One of the most important tasks facing the industry is to broaden its investor base beyond the traditional group of limited partners.
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In addition, Accel Partners distributed 22, 123, 009 Class A Facebook shares to its limited partners in various funds, according to the SEC filing.
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"When your limited partners tell you that you don't get it, you begin to wonder, " says Anderson, the lead partner at Waltham, Mass.
Just as the limited partners are taxed at capital gains rates on their profits so should the managers be taxed at the same rates.
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