As a sign of how fast this is moving - the inherently small-c conservative legal profession is talking about disruption of a big fee-paying sector. Not sure if this means they are excited or scared.
Just found this from Dec 2019 - well ahead of the curve.
HOW WOULD A VC/PE FUND BE TOKENIZED?
Most VC/PE funds are set up as limited partnerships (“LPs”). The LP structure has several advantages for investment funds. It allows investors to participate, as limited partners, without taking an active role in fund management but benefit from limited liability; any LP agreement and, in many cases, the fund’s accounts are not made public; and LPs are transparent to tax, so that each limited partner is taxed directly.
Investors in VC/PE funds, as limited partners, contribute funds to the LP while the general partners invest the fund into multiple companies on the basis of a defined investment strategy.
The investors and managers of the VC/PE fund typically receive a share in the fund’s profits by way of a carried interest in the fund; this may be paid to a carried interest partner, often itself another LP of which the sponsors are partners.
In the context of tokenization, a fund would be split into units, with each unit representing an “interest” in the economics of the fund. Investors would subscribe for tokens representing an interest in the fund. Funds could be structured as evergreen or open-ended funds (where there are no limits on... (More)