Quotes About Limited Partners

At the end of the day, VCs have to provide their limited partners with great returns, or they aren't going to be able to raise another fund.

There are times I think it might be nice to have deep-pocketed limited partners to provide me with some cushion. But I enjoy having no responsibilities except to myself, financially.

The better I get at investing in and helping companies, the result is more founders who are excited to work with me and more of my wonderful limited partners insisting I take piles of their loot to keep it all going.

A hedge fund is a private partnership that has a start and an end, and involves a general partner and several limited partners, each of whom brings something to the partnership. At the start, the general partner brings all the experience and limit partners bring all the money. At the end, the general partner leaves with all the money and the limited partners leave with all the experience.

Not all our investors reacted with such aplomb, but every last one of our more than ninety limited partners stood fast. No one asked to withdraw.

Unlike some hedge fund managers who also had a waiting list, we could have increased our fees by raising our share of the profits or adding more capital, thereby driving down the return to limited partners. Such tactics by the general partner to capture nearly all the excess risk-adjusted return, or "alpha," rather than share it with the other investors are what economic theory predicts. Instead, I preferred to treat limited partners as I would wish to be treated in their place.