Skin in the game
Fund your GP Commitment without selling equity or taking a personal loan.Non-recourse financing powered by Alpha Protocol™.
- Collateral
- LP interest
- Law
- Common & Civil
- Tenor
- 3-5 years
The global trap
Whether you are launching an SCSp in Luxembourg or a VCC in Singapore, LPs everywhere are demanding "Skin in the Game."
- The ask: Institutional LPs now demand a 2% - 5% GP Commitment. On a €100M fund, that's €2M - €5M cash.
- The asset rich / cash poor dilemma: High-performing GPs often have millions in accrued carry from prior funds, but limited cash on hand.
- Fee waivers hurt OpEx: Waiving management fees solves the commitment issue but starves your Management Company of the cash needed for salaries, compliance, and travel.
- Personal Risk: Traditional banks in London, Frankfurt, or NYC will ask for a mortgage on your home and a personal guarantee.
GP1 Commit approach
We treat your GP Commitment as a high-grade financial asset, regardless of where your fund is domiciled.
- The "GP Mortgage": We lend directly to a special purpose vehicle (GP Co-Invest SPV) that holds your interest.
- Non-recourse: If the fund goes to zero, we take the LP interest. We do not come after your personal assets.
- Cash flow sweep: Repayment comes directly from fund distributions. You don't pay monthly interest out of pocket.
- Global structuring: Whether it's a Luxembourg Pledge or a UCC Control Agreement, we have the legal rails to secure the loan in your local jurisdiction.
Use cases
GP 1 Commit is designed for the moments when you need liquidity to meet GP commit obligations.
The spin-out
01You are leaving a mega-fund to start Fund I. You have $5M in accrued carry at your old firm, but $0 liquidity. LPs want to see $1M commitment.
Solution
We lend $800k against the future distributions of your new fund, bridging the liquidity gap.
The anchor lock
02A large pension fund offers a $50M anchor check but mandates a 3% GP commit ($1.5M). You only budgeted for 1%.
Solution
We provide the delta ($1M) instantly to satisfy the LPA requirement and lock in the anchor.
The scale-up
03Fund I was $50M. Fund II is $200M. Your GP commit obligation just jumped from $500k to $4M. Your Fund I carry hasn't paid out yet.
Solution
We lend against the NAV of Fund I and Fund II to fund the larger check size.
The Alpha Protocol™
A standardized, proprietary framework that transforms illiquid partnership interests into high-grade collateral across Civil and Common Law jurisdictions.
Standardize
We deploy a proprietary legal wrapper around your GP interest. This creates a standardized asset class that lenders can underwrite instantly, compliant with local laws (e.g., AIFMD in EU).
Secure
Our unique collateral structure creates "Super-Priority" for capital providers. We use jurisdiction-specific perfection methods (Pledges, Control Agreements, Floating Charges).
Automate
Distributions are automatically routed via our platform rails. Interest and principal are swept seamlessly, leaving you with the profit.
Legal framework matrix
A standardized, proprietary framework that transforms illiquid partnership interests into high-grade collateral across Civil and Common Law jurisdictions.
Common law
United StatesUnited KingdomNetherlandsBelgiumUnited Arab EmiratesMechanism: Security Interest via Control.
- UCC Article 8 "Opt-In" (US)
- Fixed & Floating Charges (UK/SG)
- Security Assignment of Rights
- Registrar of Companies Filing
Civil law
LuxembourgGermanyAustriaThe NetherlandsMechanism: Security Interest via Control.
- UCC Article 8 "Opt-In" (US)
- Fixed & Floating Charges (UK/SG)
- Security Assignment of Rights
- Registrar of Companies Filing
SEBI AIFs
IndiaMechanism: Security Interest via Control.
- UCC Article 8 "Opt-In" (US)
- Fixed & Floating Charges (UK/SG)
- Security Assignment of Rights
- Registrar of Companies Filing
Term sheet parameters
Currencies
USD, EUR, GBP
We lend in the base currency of your fund to avoid FX mismatch risk. SGD and INR available upon request.
Cost of capital
Base + 6-9%
Floating rate over SOFR (USD), Euribor (EUR), or SONIA (GBP). Interest rolls up (PIK) if cash flow is delayed.
LTV ratio
Max 60%
Loan-to-Value based on the NAV of your LP interest. We re-mark quarterly based on audited fund performance.
Tenor
3-5 Years
Designed to bridge you to the first major exits or recapitalizations. Renewable for evergreen structures.
Why use GP1 Commit?
Traditional bank
- Recourse
- Full personal
- Collateral
- Home / Liquid Assets
- Impact on OpCo
- Neutral
- Speed
- 3-6 Months
- Global Support
- Local only
Fee waiver
- Recourse
- N/A
- Collateral
- Management fees
- Impact on OpCo
- Negative (Reduces Cash)
- Speed
- Instant
- Global Support
- Global
GP1 Commit approach
- Recourse
- Non-Recourse
- Collateral
- LP interest only
- Impact on OpCo
- Neutral
- Speed
- ~1 week
- Global Support
- Global (10+ Jurisdictions)
Commitment Model
- Total Commitment:
- $2,000,000
- Your Cash (Equity):
- $500,000 (25%)
- Infra One Loan (Debt):
- $1,500,000 (75%)
- Est. cost of capital
- ~12% APR
*Preserve your upside. Leverage improves your cash-on-cash return significantly if the fund performs >1.5x.
- Day 0
Connect
Sync your Fund Admin (Carta/Allvue) via API. We ingest fund data automatically.
- Day 1
Underwrite
Our engine calculates LTV and interest rates based on your track record and strategy.
- Day 3
Structure
Generate jurisdiction-compliant loan docs and control agreements instantly.
- Day 7
Fund
Capital is wired to your GP Co-Invest vehicle, ready for the capital call.
Cross-Border Questions
Yes. We use a "Pledge of Limited Partnership Interests" governed by Luxembourg law. This is a robust security interest that allows us to step in without disrupting the fund's operations. We can also pledge the GP's bank account in Lux.
Transparency is key. We provide standard disclosure language for your LPA or Side Letters stating that the GP commitment may be leveraged. This is standard market practice in top-tier funds globally.
We lend in the fund's base currency (USD for US/Cayman, EUR for Lux/DE/NL, GBP for UK). This eliminates currency mismatch risk for you. You borrow EUR, you commit EUR, you get repaid in EUR.
Yes. There is typically a small prepayment fee (1-2%) in the first 18 months to ensure lender yield, but after that, you can refinance or pay off the loan from carry distributions penalty-free.