Limited Partners, much like VCs searching for outlier founders, are often looking for fund managers who are "a little off." They value investors who think differently and don't follow the consensus, as this non-traditional approach is seen as the path to generating outsized returns.

Borrowed from private equity, continuation funds allow a GP to move a prized asset from an old fund into a new vehicle they still control. This provides liquidity to LPs in the original fund who can choose to cash out, while others can roll over and continue to ride the winner.

Contrary to the idea that all capital is good capital, elite founders strongly dislike SPVs. They want to know exactly who is on their cap table and view SPVs as a risky, obfuscated way to assemble capital that compromises control.

The strength of a GP-LP relationship isn't measured by co-invest rights or fee breaks. It's demonstrated when a GP offers valuable advice or connections that improve the LP's overall portfolio, even when there's no direct financial gain for the GP. This uncompensated help is the hallmark of true partnership.

To participate in highly competitive late-stage deals, some VCs organize SPVs without management fees or carry. While not directly profitable, this helps the startup fundraise, strengthens the relationship, protects the VC's original investment, and signals access to LPs for future funds.

Large LPs are increasingly investing directly in top-tier private tech companies, circumventing traditional VC funds. They gain access through SPVs with minimal fees, creating a competitive dynamic where VCs must justify their value proposition against direct, low-cost access to the most sought-after deals.

TA's compensation structure aligns partner incentives directly with investor returns. The primary way for partners to increase their ownership (carry) is by generating realized gains—i.e., returning capital to Limited Partners. This systemically prioritizes liquidity and successful exits over simply deploying capital or marking up portfolio value on paper.

LPs have a binary focus: cash-on-cash returns. As long as a VC fund is consistently distributing multiples back to them (high DPI), they are less likely to question the fund's strategy. This "what have you done for me lately" attitude is key to securing re-investment in future funds.

To ensure "radical alignment," solo capitalist Oren Zeev pays himself zero from management fees, reinvesting 100% back into his funds. As the largest LP in every fund and with a 30% carry, his entire economic incentive is tied to long-term value creation, not fee generation, which is highly unusual.