Experience with buying out an existing LP for a fund?

March 03, 2025
by a searcher from Lake Forest College in Denver, CO, USA
This isnt exactly search fund related, but close enough and I havent stumbled upon this sort of thing in posts or other forums, so curious to get feedback from the group. How would you value or have you heard of a "standard" way to value purchasing into an existing fund? This means buying out an existing LP's shares and determine what the value of the share price is relative to par
Ex. Fund A
- Has been operating against their plan for 5 years and has ~5 years remaining
- 50/50 profit split with GP
- No GP fees/commission/salary
- Shared the past year's financials
from Boston College in Boston, MA, USA
from The University of Texas at Austin in Dallas, TX, USA