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By Andrei PLACINTA, Senior Associate - Alternative Investment Team, MC Square Luxembourg
Existing Contractual Framework Between Limited Partners (LP) and Fund General Partners (GP)
In the fund industry, Limited Partners (LPs) and General Partners (GPs) enter into a commitment agreement. Under this agreement, LPs commit to providing capital contributions when called upon, while GPs undertake responsibility for managing the fund’s operations and investments. According to the terms, LPs are obligated to meet capital calls as requested; failing to do so constitutes a default, resulting in forfeiture of prior contributions and termination of their rights within the fund...
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