Can I share carry with recipients who are not accredited or who do not meet financial accreditation standards?

Yes, you can share carry with recipients who do not meet financial accreditation standards, but only if they are providing substantial assistance to the fund in identifying, assessing, and negotiating investments (as described further below). To the extent they do so, they can be accredited by virtue of conducting those activities for the fund.

A deal partner should be a person already in your network who provides substantial assistance to you and your fund in identifying, assessing, and negotiating fund investments. This typically would include activities such as assisting you in understanding a potential portfolio company's business model, assessing the share price, understanding and negotiating the terms of the investment, monitoring the investment after it is made, and performing these same functions for any follow up investments by the fund. You should not share carry for simply making introductions to portfolio companies and founders, sourcing limited partners, or for any reason other than that the deal partner will provide the assistance with investments described above.

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