Class A: 10% pref dividend; 0% equity Class B: 5% pref dividend; 60% equity Class C: 0% pref dividend; 20% equity
Yes, you can structure an investment fund to offer different returns or fee arrangements. If your fund is structured as a corporation, you could issue different share classes with varying voting rights, equity interests, preference rates on dividend distributions, etc. If the fund is structured as an LLC taxed as a partnership, the LLC operating agreement can provide for different classes of LLC membership units, which provide for different allocation methods.
Answered 5 years ago
Access 20,000+ Startup Experts, 650+ masterclass videos, 1,000+ in-depth guides, and all the software tools you need to launch and grow quickly.
Already a member? Sign in