AngelList Platform LPs are LPs who discover a syndicate or a fund via the AngelList Platform and are attributed to AngelList. General Partner LPs are any LPs that are not AngelList Platform LPs.
Under the traditional carry model, AngelList receives 5% of the carry for investment advisory services rendered to the fund, but waives the 5% carry for a General Partner’s LPs. As a result, a General Partner always receives the full 20% carry (or whatever carry amount they set) on their own LPs.
Rolling Fund Placement Fees
Under the placement fee model, for Rolling Funds, some General Partners may elect to pay a 5% placement fee on investments by AngelList Platform LPs to an AngelList affiliated broker-dealer. This placement fee will be in lieu of the traditional carry model (above). The placement fee is charged to the fund and borne pro rata by all fund LPs as a fund expense unless a General Partner elects to to cover it from management fees attributable to these AngelList LPs’ investments.
For example, if a General Partner raises $1M of a $10M fund from AngelList LPs, that $1M is subject to a 5% placement fee that is charged as a fund expense upon close (unless covered by management fees).
NOTE: Starting October 1, 2023, AngelList expects to transition all Rolling Funds to the placement fee model (described above). If an LP is closing into the fund and their subscription length will be affected by this transition period, the LP investment flow will make this timeline clear. The GP of each fund may decide to offset the placement fee out of their management fees, which will also be clear to the LP when closing into the fund.