Subscription Agreement for a Private Equity Fund (ILPA Model Form)

Summary

The subscription agreement (or subdoc) is one of the primary documents required when forming and launching a private equity fund. The subdoc is a binding legal agreement among the private equity fund, the fund's general partner, and each prospective fund investor. The subdoc sets forth the basis on which a prospective investor will be admitted as a limited partner of a private equity fund formed as a limited partnership, or member if the fund is formed as a limited liability company. A prospective investor will make a number of representations and warranties in the subdoc, most importantly that it is an "accredited investor" and/or a "qualified purchaser," and that it meets the applicable know your client/anti-money laundering standards. These representations are supported by an investor questionnaire, typically in a check-the-box format, in which the investor certifies as to these matters.