Spotting GP/LP misalignment
7 examples of what happens when interests are misaligned
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Spotting GP/LP Misalignment
Welcome back! 👋
I think everyone understands why it’s important to have alignment of interests in a healthy GP/LP relationship (see my second pillar of LP investing for background).
Today I’d like to discuss how such an alignment can deteriorate over time and can even negatively impact LP returns. I will do this through providing a bunch of examples, to make this exercise as practical as possible.
I have alluded to this topic for some time now, but now feel the need to write about it publicly as it’s quickly becoming a blind spot for LPs.
