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SD-15.10 — Fund Capital Raising

Business Domain: BD-15 Distribution, Product & Client Management (Commercial) · Applies: PRIV

Purpose

Runs the GP-side fundraise for a closed-end fund — bringing limited partners into a fund from launch to final close. SD-15.10 is the private-markets fundraising capability: it builds the fundraising materials (the private-placement memorandum, the pitch), runs the data room, manages the LP pipeline, negotiates the commercial terms, and drives the fund to its first and final close. It is the GP / manager side of the transaction whose LP / allocator side is BD-03 — one firm’s fundraise is another’s fund-commitment decision. It is not continuous open-ended distribution — that is SD-15.4 / SD-15.7 — and it is not the fund’s investing, which is BD-04.

Service Operations

  • Prepare the fundraising materials — produce the private-placement memorandum, the pitch book and the fundraising track record.
  • Run the fundraising data room — build and run the data room the prospective LPs conduct their diligence in.
  • Manage the LP pipeline — manage the pipeline of prospective limited partners through the fundraise.
  • Negotiate commercial terms — negotiate the fund terms and the side letters with prospective LPs (the side-letter compliance tracking is SD-10.5).
  • Drive to first and final close — manage the fundraise to its first close and through to its final close, and the re-ups from existing LPs.

Inputs and outputs

  • Inputs: the new fund from SD-15.2; the firm’s private-markets track record; the LP universe; the fund terms (PM-10).
  • Outputs: the closed fund and its LP base — consumed by SD-15.11 (the LPs to onboard), SD-12.8 (the commitments to process), SD-10.5 (the side-letter obligations) and BD-04 (the fund that now invests).

Entities

  • Consumes: PM-01 Fund & Vehicle, PM-10 Fund Terms, PM-06 LP Commitment, E-01 Legal Entity (the prospective LPs); the SD-15.2 new fund.
  • Owns: the fundraise and the LP pipeline — a process artefact.

Standards

  • ILPA fundraising and fee-transparency guidance.
  • The private-placement-memorandum and subscription-document conventions.
  • The pre-marketing rules of the EU cross-border distribution framework.

Open extensions

  • The fundraise-stage and close sub-model.
  • The Service-Operation-level input/output contracts.

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