No-fault divorce

A contractual mechanism allowing specified fund-investor action without proving cause. Separate provisions may permit removal of the general partner, termination of the investment period or dissolution, subject to the agreed conditions.

No-fault divorce in practice

Hypothetical: a fund agreement permits ending the investment period when at least two-thirds of eligible limited-partner voting interests approve, with specified exclusions, notice and other conditions satisfied. This is a voting-interest denominator, not two-thirds of investor headcount, and it does not automatically confer a separate removal right.

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