Investment Management Agreement
What is this form?
The Investment Management Agreement outlines the relationship between a private equity fund and its manager. This form is specifically designed for private equity partnerships, allowing the fund to define the terms of management services and fees. Unlike other investment agreements, this form includes detailed clauses for the roles and responsibilities of the manager, ensuring clarity in investment decisions and operations.
Form components explained
- Appointment of the manager and services provided.
- Management fee structure and payment schedule.
- Indemnification clauses for the manager and related persons.
- Reporting and communication obligations with partners.
- Termination procedures for the agreement.
Common use cases
This form should be used when a private equity fund seeks to engage a management company or individual to oversee its investments. It is particularly important when establishing the framework for performance expectations, fee arrangements, and managerial responsibilities for sustained compliance and alignment with investment goals.
Intended users of this form
- Private equity funds needing management services.
- Investment managers looking to formalize their role in fund operations.
- Partners within a fund who wish to clearly outline the management structure.
Instructions for completing this form
- Identify the parties involved (the Manager and the Partnership).
- Specify the date of the agreement and relevant details from the Partnership Agreement.
- Detail the services the Manager will provide to the Partnership.
- Outline the structure and frequency of management fees.
- Include indemnification provisions for the Manager and its affiliates.
Notarization requirements for this form
This form does not typically require notarization to be legally valid. However, some jurisdictions or document types may still require it. US Legal Forms provides secure online notarization powered by Notarize, available 24/7 for added convenience.
Avoid these common issues
- Failing to clearly define the scope of services the Manager will provide.
- Not specifying the management fee schedule and calculation methods.
- Omitting indemnification clauses that protect the Manager.
Advantages of online completion
- Convenient access to a legally vetted document format.
- Editability allows customization to meet specific needs.
- Downloadable for immediate use, ensuring time efficiency.
Legal use & context
- The Investment Management Agreement establishes a legal framework for managing investment activities.
- It is enforceable in court, provided all parties comply with the terms set forth.
- Careful adherence to the agreement will mitigate disputes and legal challenges.
Summary of main points
- The Investment Management Agreement is crucial for defining managerial roles in private equity funds.
- Clear terms regarding fees and responsibilities prevent future disputes.
- This form is adaptable for use in various jurisdictions, particularly Delaware.
Form popularity
FAQ
An investment manager is an individual who manages investor finance and focuses on yielding future benefits for the investor. Investment managers manage investment portfolios and operate under the government's securities legislation.
A discretionary investment management service allows you to delegate responsibility for the day-to-day management of your investments to a professional investment manager.Please remember that decisions to buy or sell investments within your portfolio will be made by us and will not be referred to you for approval.
Investment management refers to the handling of financial assets and other investmentsnot only buying and selling them. Management includes devising a short- or long-term strategy for acquiring and disposing of portfolio holdings. It can also include banking, budgeting, and tax services and duties, as well.
A model investment management agreement (IMA) between the plan administrator of an employer's qualified pension plan (as defined under the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code of 1986 (Code)) and an investment manager for the plan.