What is a Management Company?

A management company is an entity (typically an LLC) that is created for the purpose of managing the operations of a venture capital fund. This includes collecting management fees, paying out and accounting for operational expenses, organizing employment or other business agreements, and handling regulatory filings. Facilitating these activities through a management company protects fund managers from complete liability when it comes to the fund’s activities.

The management company is typically created and owned by one or multiple fund partners. Sydecar customers typically use the Delaware Registered Agent website to create their management companies as an LLC registered in Delaware.