Carry, GP commit, and cross-fund economics are genuinely complex. Your prenup should account for all of it.

What it is

The share of fund profits allocated to the investment team, typically 20% of gains above a preferred return hurdle. Carry is granted when you join a fund, vests over time (often 3 to 5 years), and generates cash distributions only as portfolio companies exit over a fund life of 7 to 12 years.

Prenup relevance

The key questions are: when was carry granted relative to the marriage, what portion has vested, and how are future distributions treated? Because carry can be granted years before it produces income, the timing analysis is more complex than typical equity compensation.

What it is

Partners typically invest personal capital alongside limited partners, often 1% to 5% of the fund size. This commitment is drawn down over the investment period (usually 3 to 5 years) and returned with gains or losses as the fund matures. It represents a personal asset with uncertain timing of return.

Prenup relevance

GP commit is personal capital tied up for a decade or more. A prenup can address whether the commitment itself (and its eventual return) is treated as pre-marital or marital depending on when the capital was called and deployed.

What it is

Senior partners may own equity in the management company that collects annual management fees (typically 2% of committed capital). This is a distinct asset from fund carry. It generates predictable annual income and may appreciate if the firm grows its assets under management.

Prenup relevance

Management company equity is closer to business ownership than deferred compensation. It generates ongoing income, has potential resale value, and may vest or be subject to buyback provisions. Your attorney can help you address it as a separate asset class from carry.

What it is

Many VC professionals have rights to invest alongside their fund in specific deals, often with no management fee or carry. These co-investments may be structured as special purpose vehicles (SPVs) and are typically separate from fund economics.

Prenup relevance

Co-investments made during the marriage with personal funds may be treated differently than those made before. A prenup can address both existing co-investment positions and a framework for future ones.

What it is

VC professionals often serve on boards of portfolio companies and may receive personal advisory grants or board observer compensation separate from the fund. These vest on their own schedules and are held individually, not through the fund.

Prenup relevance

Advisory shares are personal equity grants that operate independently from fund economics. They vest, may be exercisable, and could become liquid at different times than your carry. Each position may need to be addressed separately.

What it is

A partner at a VC firm typically has carry positions across multiple fund vintages simultaneously. Fund I may be distributing while Fund III is still investing. Each fund has its own timeline, carry percentage, and profit hurdle.

Prenup relevance

A prenup can be structured to address carry from current and future funds without needing to be updated every time your firm raises. The framework can account for the reality that new fund positions will be granted during the marriage.