Re-Up
A re-up is when an existing LP commits to a manager’s next fund (a subsequent vintage).
Allocator relevance: A major capital flow driver—re-ups reflect trust, satisfaction with reporting/governance, and commitment pacing strategy.
Expanded Definition
Re-ups are often the manager’s most reliable fundraising base. For allocators, re-up decisions are typically based on realized outcomes (DPI), portfolio quality, team stability, adherence to thesis, and operational experience (reporting timeliness, transparency). Re-ups also relate to pacing: allocators maintain exposure to preferred managers across vintages to smooth the J-curve and diversify timing.
A manager may prioritize re-up LPs in oversubscribed funds.
How It Works in Practice
As a fund matures, LPs run a review (performance, attribution, ODD updates) and decide whether to commit to the next vehicle. Some LPs negotiate improved terms through side letters or MFN processes.
Decision Authority and Governance
Governance frameworks set re-up review processes and thresholds. Decision-making often considers both fund performance and the quality of the GP relationship and operations.
Common Misconceptions
- Re-ups are automatic if the fund is “good.”
- Re-up decisions are purely return-driven.
- Skipping one vintage permanently harms access (sometimes, but not always).
Key Takeaways
- Re-ups are trust + performance + operational experience.
- Pacing models often depend on disciplined re-ups.
- Team stability and governance matter heavily.