The Private Markets Playbook

Carry sharing allows managers to allocate part of their carry to collaborators who help source, diligence, or manage deals.

Side letters allow fund managers and LPs to negotiate custom terms outside standard subscription documents.

Management fees can offer operational stability for syndicate leads, but they must be balanced with investor expectations and deal performance.

Management fees for special purpose vehicle (SPV) managers are optional and vary widely, ranging from 0% (carry-only) to about 2% per year for established fund managers.

A Special Purpose Vehicle (SPV) pools investor capital into a single-purpose legal entity for one investment.

Evaluate providers on speed, compliance coverage, and pricing transparency.

SPV leads earn money mainly through carried interest (typically 10–20% of profits) when the company exits.

How to set up an SPV in 2026, step by step: choose an entity, prepare documents, clear compliance, onboard investors, and close. Includes timeline, costs, and pitfalls.

Common stock represents basic ownership held by founders and employees. Preferred stock is the standard instrument investors receive in priced rounds.