Hey Samir, great article - one note for correction: Rolling Funds are on a master series LP structure, not LLC.

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Great analysis as usual.

This comment could probably use a little more balance:

"Further complicating things is the unique quarterly model that may result in an LP investing in one quarter having a top-decile outcome and an LP that starts investing in the next quarter getting a bottom-decile outcome."

Part of the structure of the rolling fund is a rolling average carried interest over two years. So if an LP misses the next quarter, that will be baked into the average of 8 quarters.

From my article: https://lawofvc.substack.com/p/2-episode-rolling-venture-funds-through

"2. Carry Calculations

Quoting From Ali Hamed's Medium Post: 'But in the case of a rolling fund, you could invest $100k, lose 30% of your money, and the GP could still get carry. How? The fact that each vintage is its own distinct entity means that the carry on each deal is cross-collateralized. And therefore if one deal flops, it won’t wipe out part of the carry from the next winner.'

Avlok Kohli, the CEO of AngelList, clarified that carried interest is cross-collateralized across two years of fund cycles (up to 8 separate vintages)." https://twitter.com/avlok/status/1293207877415387137?s=20

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As I managed a few traditional funds before, I can tell you; fund administration for the "evergreen master series LP structure" must be a nightmare. I wonder what platform they use to manage this? Do you?

I used giants such as Maples, Vistra, etc., but I can't imagine they would work something like this. I heard that Angel List used to use Assure.co as an infrastructure, but not anymore.

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