How LPs Evaluate GP Succession Planning in Venture Capital

When a venture firm's founding partner steps down or leaves unexpectedly, limited partners face real risk. In this episode, Lucas and Luna examine why succession planning has become a top LP due diligence priority. They share data from a 2025 placement agent survey showing only one-third of VC firms have a formal succession plan, discuss the difference between a 'key person' clause and true leadership continuity, and walk through what a robust plan looks like—including mentoring timelines, carried interest structures, and co-investment rights. The hosts also explore a real-world cautionary tale of a mid-sized firm that lost its lead partner without a transition roadmap, and what LPs can demand in side letters to protect their commitments. This is essential listening for any institutional investor evaluating a venture fund for the first time or re-upping with an existing manager. #VentureCapital #LimitedPartners #SuccessionPlanning #GP #LP #DueDiligence #KeyPerson #FundManagement #InstitutionalInvesting #PrivateEquity #CarriedInterest #SideLetters #PortfolioConstruction #RiskManagement #Business #Finance #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo