How LPs Evaluate GP Fee Structures Beyond Management Fees

In this milestone 150th episode, Lucas and Luna dive into a critical but often overlooked part of venture capital limited partner due diligence: how LPs evaluate general partner fee structures beyond the standard 2-and-20. They break down the three components that matter most to sophisticated LPs — management fees, carried interest, and transaction fees — and explain why the real negotiation happens on the edges. Using a concrete example of a $400 million fund with a 2 percent management fee and a 20 percent carry, they walk through how a one percent difference in management fee can translate into tens of millions of dollars over a fund's life. They also explore how LPs pressure-test assumptions about fund size, GP cost structures, and the impact of fee offsets and rebates. The conversation covers the rise of 'fee transparency' as a buzzword, the actual mechanics of 'fee waivers', and why some LPs prefer a lower management fee over a lower carry. Listeners will walk away with a practical framework for evaluating fee terms in any venture fund, whether they are writing a $5 million check or a $50 million one. #VentureCapital #LimitedPartners #GPFees #FeeStructures #ManagementFees #CarriedInterest #TransactionFees #FeeTransparency #LPDueDiligence #FundEconomics #PrivateEquity #StartupInvesting #Finance #Business #Investing #AlternativeAssets #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo