Raising and closing
No-fault removal
Also known as No-fault divorce
A right for a supermajority of LPs to remove the GP or end the fund without proving wrongdoing.
The threshold is usually high, often three quarters of commitments. It gives LPs an exit if the relationship breaks down even when nothing illegal has happened.
Why it matters when you raise
It is a common ask from institutional LPs, and a firm no can cost you those cheques.