Eliminating Carry Fees on AngelList Platform LPs
Fund managers on AngelList will now keep all their carry—regardless if they raised from platform LPs.
Nov 14, 2022 — 1 min read
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- AngelList will no longer charge carry fees on platform LPs for Venture Funds or Syndicates.
- This change will increase deal quality for AngelList platform LPs because fund managers will have more incentive to share their fund with the AngelList Capital Network.
- We've launched Venture Fund browse to make it easier for platform LPs to discover new funds to invest in.
One of AngelList's unique value-adds to fund managers is our capital network. With a few clicks of a button, fund managers can spin up a Venture Fund, Rolling Fund, or Syndicate and tap into a vast network of LPs on the AngelList platform. On the backend, AngelList handles:
- Management of the investment entity
- AML/KYC checks on AngelList LPs
- Taxes (K-1s)
- Valuation updates
- SEC filings
Access to platform LPs has allowed fund managers to raise an additional $2.3B, and earn an additional $530M in carry to date. Historically, we’ve charged fund managers a 5% carry fee on capital raised from AngelList platform LPs.
Two weeks ago, we eliminated this carry fee for Syndicates. Today, we’re eliminating this fee for Venture Funds as well—and soon we’ll also be removing it for Rolling Funds. This means you keep all your carry, regardless whether you raise from platform LPs or not.
What’s more, to make it easier for AngelList platform LPs to discover funds, we've updated the LP dashboard to make it possible for approved LPs to browse Venture Funds and apply to invest.
Taken together, these changes will incentivize GPs to raise more capital, and in turn, improve the quality of investments for platform LPs. To calculate the costs associated with running your Syndicate on AngelList, check out our Fund Cost Calculator.
Disclaimer
This document and the information contained herein is provided for informational and discussion purposes only and should not be relied upon when making any investment decisions. Nothing contained herein is intended to be a recommendation for any investment or other advice of any kind, and shall not constitute or imply any offer to purchase, sell or hold any security or to enter into or engage in any type of transaction. Past performance is not indicative of future results. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. We undertake no obligation to provide updates or revisions to reflect any changes in actual or expected returns.
