·The Dash
What an LPA is, and why an investor should read it
The LPA is a fund's core document. In plain language: what it locks in, and which clauses to check before you sign.
An LPA (Limited Partnership Agreement) is the agreement a fund operates under. In short: it’s the rules of the game between investor and manager, fixed on paper. Here’s what matters in it.
What an LPA locks in
- Distribution order — who receives income and capital, and in what sequence (the waterfall).
- Terms — the investment period, extension conditions, exit windows.
- Fees and the manager’s share — how much the fund takes, and for what.
- Rights and obligations — what the investor can do, what the manager can do.
- Default procedures — how collateral is executed.
Why it matters
Marketing on a website is promises. The LPA is obligations. Everything that’s actually guaranteed (and what isn’t) is written here. So you read it before signing, not after.
Which clauses to check
- Waterfall. Does the investor really get paid before the manager? Where does the manager’s capital sit (first-loss)?
- Exit. When and on what terms can you exit? What’s the discount in liquidity windows?
- Fees. What makes up the fund’s share and how it affects your yield.
- Law. Which law governs the agreement and where disputes are resolved.
How it works at The Dash
- The distribution order is fixed in the LPA and doesn’t change with a period’s result: investors first, manager second.
- The Dash’s capital sits in the first-loss tranche.
- The agreement is governed by English law; disputes are resolved per the LPA.
Always read the LPA carefully before investing, and consult an independent lawyer if needed.
This material is informational and is not an offer or individual investment advice. Investments are illiquid and carry the risk of capital loss.