Fund Formation

Gurpreet S. Bal, Partner, Foley & Lardner LLP, Silicon Valley
Fund formation is a specialized practice area that sits at the intersection of securities law, partnership taxation, and investment management regulation. This hub covers the legal structure of venture funds and hedge funds — from the general partner entity and limited partnership agreement to LP side letters, sidecar vehicles, and the SEC registration and reporting obligations that govern fund managers. Whether you are forming your first fund or expanding an existing platform, these articles explain the mechanics and the decisions that matter most.

Articles in This Category

Anatomy of a Venture Fund Structure

How a standard venture fund is legally organized — the GP entity, management company, carried interest structure, and LP relationship.

LP Agreements and Side Letters

Key provisions in limited partnership agreements and how institutional LPs negotiate side letter accommodations and protections.

Fund Investment Valuation Methods

How venture funds value private portfolio companies for LP reporting, ASC 820 fair value standards, and ILPA guidance.

Sidecar Funds and SPV Structures

How sidecar funds and single-investment SPVs are structured to allow LPs to co-invest alongside the main fund.

Exempt Reporting Adviser vs Registered Investment Adviser

The ERA filing requirements, the threshold for full SEC registration, and the compliance obligations at each level.

Fund Registration Exemptions

The 3(c)(1) and 3(c)(7) exemptions from Investment Company Act registration and how fund managers stay within them.

Anatomy of a Hedge Fund Structure

How hedge funds differ from venture funds in structure, investor eligibility, liquidity terms, and regulatory treatment.

Also on this topic: Fund Formation — Reference Hub on blegal.ai
Gurpreet S. Bal is a Partner at Foley and Lardner LLP in Silicon Valley, where he advises fund managers and investors on fund formation, venture capital transactions, and investment management regulation.