The Fund+ involves the following parties: the Administrator, Members, the Advisor and the Organizer.
Administrator. Sydecar is appointed as the administrator for all deals on its platform to manage the Fund from an administrative and operational perspective (”Administrator”).
For any strategic decision (e.g. admission of members, use of the funds, dissolution, liquidation events, follow-on investments), the Administrator is strictly acting pursuant to the instructions of your instructions.
The Administrator is not owning interests in the Fund. The holders of interests are the Organizer, the Advisor, and the Members.
Advisor. This is the person sourcing deals and making investment decisions on behalf of the members of the Fund (aka the investors), similar to a General Partner in a traditional venture capital fund. If you are giving investment advice to your Investors, you are considered to be an Advisor of the Fund. The Advisor is entitled to a carried interest, a performance based fee, to compensate for its investment advice and lending the investment opportunity.
On our platform, as Deal Lead you are the Advisor by default.
Organizer. This is the person responsible for the management of the Fund by making strategic decisions on behalf of the Fund or instructing the Administrator to carry out delegated functions.
Although responsibilities between the Advisor and the Organizer can be split, on our platform, the Organizer is the same person as the Organizer by default, such that the Organizer is the “Deal Lead”. You could decide to set up separate entities, one acting as a management company (which will be the Organizer) and one acting as the GP (which will be the Advisor). The Organizer receives the management fees (is any).
The Deal Lead ultimately remains responsible for any decisions relating to the strategic management of the Fund.
Members. Members are your investors - this is the equivalent of a limited partner in a traditional venture capital fund. Each Member owns a percentage of the Fund calculated on the basis of its investment amount relative to the total size of the Fund. This is called an “Interest”. Generally, Members do not participate in the management of the Fund except for certain specific situations where their participation is needed for the Fund to perform its purpose of making an investment or appointing a new Administrator.