Financing GP Commitment

BRE's picture
Rank: Baboon | 151

For those of you with carry who are expected to make a contribution to the GP, how are you contributing cash if you don't have company financing available.

While I can contribute my allocation in cash, I'd rather not lock up the majority of my current net worth when there are other major life milestones coming up in the next 5 years (house, wife, kids). Aside from F&F, are there external financing sources out there that understand values of carried interest and are willing to lend? I have a good idea of the value of the carry based on unrealized marks and that value is expected to increase even further as more capital is deployed.

Personal loan rates are ridiculous low at 6% and draws are huge at up to $100k, but the 3 year terms are tough and don't line up with the fund life.

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Feb 4, 2020
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