How LPs Evaluate GP Soft Dollar Arrangements

In this episode of The Venture Capital Investor Podcast, Lucas and Luna dive into a corner of LP due diligence that rarely makes the headlines: soft dollar arrangements. When a venture firm uses commissions from trades to pay for research, data terminals, or even conference trips, who benefits? And who bears the cost? The hosts walk through a real-world example involving a mid-sized growth equity fund, break down why soft dollars are more common in public markets than private markets, and explain the three questions every LP should ask before committing capital. They also discuss how the SEC's stance on soft dollars shapes what GPs can and cannot do, and why a lack of disclosure might be a red flag. Tune in for a practical look at a hidden cost that can quietly erode fund returns. #SoftDollarArrangements #VentureCapital #LPDueDiligence #LimitedPartners #GeneralPartners #FundGovernance #SECDisclosure #InvestmentResearch #TradingCommissions #FundEconomics #AlternativeAssets #PrivateEquity #Investing #Finance #FexingoBusiness #BusinessPodcast #VCInvesting #PortfolioManagement Keep every episode free: buymeacoffee.com/fexingo