Fund Structure
GP Commitment
The capital the GP itself commits to the fund alongside LPs, expressed as a percentage of total fund size.
A 1-2% GP commitment is the historic norm; sophisticated LPs increasingly push for meaningfully higher figures, particularly from established firms. The question is not just the size but the source: real cash from the partners is a stronger alignment than a fee-waiver mechanism that converts management fee into commitment.
Track who at the GP is funding the commitment. Concentration in one or two senior partners is a key-person signal worth understanding alongside the formal key-person clause.