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The General Partner co-invests 10% of LP commitments (up to $1M) in a first-loss position — meaning GP capital is fully depleted before any LP capital is affected by losses.
10% of GP profit share is withheld per distribution (funded entirely from GP economics) and held as an additional reserve — providing a second layer of LP capital protection.
LPs receive a 10% per annum preferred return on capital contributed before any GP profit distributions — ensuring investors are made whole before management earns carry.
