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GP commitment

The manager's own capital in the fund. Allocators care about the amount relative to the partners' wealth and strongly prefer cash over a fee waiver.

GP commitment — The manager's own capital in the fund. Allocators care about the amount relative to the partners' wealth and strongly prefer cash over a fee waiver.

What allocators actually weigh is not the percentage in isolation but the amount relative to the individual partners' own wealth, and critically whether it's funded in cash rather than through a management fee waiver — the latter costs the GP nothing beyond forgone future income.

Frequently asked questions

Does GP commitment have to be cash?

It can be funded via a management fee waiver instead of cash, but allocators generally view cash commitments as a stronger alignment signal since a fee waiver costs the GP less in real terms.

How much GP commitment is typical?

There's no universal figure — what matters more to allocators is whether the amount is meaningful relative to the partners' own wealth, signalling genuine personal exposure to the fund's outcome.

Nothing on this page is legal, tax, or investment advice. SeRuM is not a registered broker-dealer, not a placement agent, and not an investment adviser.

GPGeneral partner: the manager of a fund. Runs the strategy, makes investment decisions, and Key person provisionA clause suspending the investment period if named individuals cease to devote agreed time

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