How do I share carry at the investment level for a Traditional Fund?

The Deal Partners feature allows GPs to share carry on Traditional Fund deals with individuals who provide assistance and expertise in identifying, assessing, and negotiating the deal.

To set up a carry sharing agreement for a Traditional fund deal, click on any investment on your Traditional Fund Investments page and select “Add Deal Partner.”

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A module will appear where you can input the name of the deal partner you wish to share carry with, as well as the percentage of carry you wish to share. You must assert you’re sharing carry just for sourcing, and that you have the authority to share carry with this deal partner.

Once the deal is approved by AngelList, you’ll be able to copy a link to the carry share agreement to share with the deal partner(s).

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 If your investment is not approved yet, you cannot add a deal partner.

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The deal partner will receive the link however you choose to share it. In order to review and accept the carry sharing agreement, the deal partner must be logged in to their AngelList account. 

The link will redirect the deal partner to a page where they can see an overview of the deal they’re receiving carry for, as well as how much carry they’re receiving. They’ll have the option to accept or decline the agreement. If they decline, you’ll receive an email notification informing you of their decision.

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If the deal partner accepts, they’ll be directed to a page where they’ll be prompted to choose from an existing entity or create a new entity to receive their carry. 

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If they create a new entity, they will have to undergo identity verification and may be asked to upload a government ID or provide additional information about their investing entity, if applicable. The entity must be KYC verified in order to accept carry. Until the entity is KYC verified, the deal partner will see a “Carry Sharing Pending” module. Screen_Shot_2021-08-01_at_4.13.21_PM.png

Once the deal partner accepts the carry sharing agreement, you’ll receive an email notification to finalize the deal. Screen_Shot_2021-08-01_at_4.13.40_PM.png

 

The email will prompt you to navigate to your Traditional Funds Investment page. You’ll see a link that says “Action Required” next to the specified deal you’re sharing carry on.

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Clicking the link will pull up the Deal Partners module. From here you can review the details of the carry sharing agreement and finalize or cancel the deal. To cancel the deal, click the three dots to the right of the deal partner’s name and select “Remove Deal Partner.”

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If you click “Finalize,” a module will populate asking you to certify and confirm the deal. Once you click “Confirm Carry Share,” the carry sharing agreement is executed.Screen_Shot_2021-08-01_at_4.14.43_PM.png

Once the deal is finalized, the deal partner will receive an email notification with the signed carry agreement share attached. You can find the executed carry share agreement by clicking on the specified deal on your Traditional Funds Investments page. 

 

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