How are are Wharton Alumni Angels' deals syndicated for its members?
We invest via a suitable Special-Purpose-Vehicle (SPV) usually a Delaware LLC. The Operating Agreements and Subscription Agreements are available on the member portal.
SPV expenses are paid by investors. For each investment the SPV collects an expense allocation from members to cover costs of the LLC (e.g., set-up, accounting, tax preparation, government tax or fees). There is an annual cap on these fees, thus the more our members invest the lower the expenses are as a percentage of invested capital.
Full Members contribute to expenses only when they invest. When they do not make a new investment there are no recurring fees.
Wharton Alumni Angels only collects expenses for actual expenses. Wharton Alumni Angels does not charge a management fee and does not collect carried interest.