Demystifying Valuation Clauses in LPAs for Emerging Managers
Equidam
JULY 23, 2025
On the flip side, weak or vague valuation terms can lead to disputes, erode confidence, and even affect governance if LPs feel the General Partner (GP) has too much leeway in marking up (or not marking down) investments. With a yearly cadence, there’s a risk that big changes (up or down) in a startup’s fortune go unreported for months.
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