Side Letter for a Private Equity Fund

Summary

This side letter template is to be used when forming a private equity fund. The side letter between an investor and the general partner (on behalf of the PE fund) will include certain terms that are specifically agreed upon by the parties in addition to the terms and provisions contained in the partnership agreement, subscription agreement, and management agreements. This template contains practical guidance and drafting notes. Side letter terms may include preferential economic terms, certain regulatory terms required by the investor, country-specific terms, as well as numerous other terms and provisions that the investor may desire, or require, prior to making an investment in the fund. Depending on the type of investor and the investor's commercial and regulatory needs, a large number and variety of provisions may be necessary. Counsel for an investor should be familiar with the investor's investment policies, regulatory requirements and preferences for investor rights and fund ...