Strictly Business
A legal blog on private funds, startups, and venture capital.
Strictly Business
A legal blog on private funds, startups, and venture capital.
Tag Side Letter
Using Side Letters in Private Funds
At some point, while raising capital for a private fund, you will likely be asked by one or more potential investors to enter into a side letter. Here are some practical pointers on the top issues you'll encounter.
Make sure you reference any fund “gate” provisions in your side letter agreements.
Recently, the Delaware Chancery Court ruled on a dispute that heated up between a hedge fund manager and the fund’s seed investor. First, a quick summary of the events leading up to the case: A seed investor provided a large…