zombie fund

Definition

A venture fund that's technically alive but has stopped making new investments, usually because performance is so bad that raising a follow-on fund is impossible. It shambles along, managing existing investments until the limited partnership agreement expires.

Example Usage

That zombie fund from 2015 still sends quarterly updates, but they haven't deployed capital in four years and their best exit was breaking even.

Origin

Financial services terminology for underperforming funds in 'run-off' mode

Fun Fact

Zombie funds create awkward situations where GPs continue collecting management fees on a dying portfolio while updating their LinkedIn profiles for their next career.

Source: Venture capital fund management terminology

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phantom equity

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advisor

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