---
title: "Fund Structure | Altss Glossary"
description: "Fund structure is the legal, economic, and operational design of a fund, including its vehicle type, governance terms, liquidity, and fee/carry mechanics."
canonical: "https://altss.com/glossary/fund-structure"
---

Fund Structures

# Fund Structure

Publisher: Altss LLCPublished 2026-01-06Content modified 2026-01-06

Fund structure is the legal, economic, and operational design of a fund, including its vehicle type, governance terms, liquidity, and fee/carry mechanics.

**Allocator relevance:** **Structure determines control, liquidity risk, reporting expectations, and economics—allocators often say “no” based on structure before discussing performance.**

### Expanded Definition

Fund structure includes whether the vehicle is closed-end or evergreen, whether it uses feeders or parallel funds, how capital is called or subscribed, and how distributions are made (waterfall mechanics). It also includes investor rights: reporting, governance, side letters, redemption terms, and LPAC involvement.

In private markets, structure is how strategy becomes investable. Two managers can run similar strategies, but structure can change the risk profile materially.

### Decision Authority & Governance

Structure is governed by legal documents (LPA/PPM) and operational providers (administrator, custodian). Allocators evaluate governance protections: conflicts policy, valuation policy, key person terms, and control rights during extensions or continuation events.

### Common Misconceptions

- Structure is “legal detail” separate from returns.

- A standard LPA means standard governance outcomes.

- Side letters don’t materially change structure.

### Key Takeaways

- Structure shapes risk, liquidity, and control.

- Governance protections are part of structure.

- Compare structure across peer funds before underwriting narratives.

## Related terms

[Limited Partnership Agreement (LPA)](https://altss.com/glossary/limited-partnership-agreement)[Private Placement Memorandum (PPM)](https://altss.com/glossary/private-placement-memorandum)[Waterfall](https://altss.com/glossary/waterfall)[Management Fee](https://altss.com/glossary/management-fee)[Carried Interest (Carry)](https://altss.com/glossary/carried-interest-carry)

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