Capital Deployed, Returns Maximized

The hurdle rate is the minimum return threshold that must be achieved before the General Partner (GP) earns any performance fee (carry). At Mobley Helms, our Emerging and Strategic tiers carry an 8% hurdle, while the Founding tier benefits from a lower 6% hurdle. This means your capital must generate returns above this threshold before we participate in any upside. It is the most fundamental protection mechanism for LP capital and ensures we are only compensated for genuine outperformance.

Unlike a flat carry structure where the GP earns the same percentage regardless of total return, our escalating carry model increases the GP's share at higher return multiples. For example, a Strategic Partner's carry starts at 17.5% for returns between 1x and 3x MOIC, but escalates to 25% for returns above 3x MOIC. This means the GP is disproportionately incentivized to pursue exceptional outcomes rather than settle for acceptable ones. The structure ensures that marginal effort at the top of the return spectrum is maximally rewarded, creating permanent alignment between GP ambition and LP returns.

Yes. LPs can increase their commitment and upgrade to a higher tier at any point during the fund's investment period, subject to capacity availability. The upgraded terms apply to the incremental commitment and, in some cases, may be applied retroactively to existing capital at the GP's discretion. We encourage this approach as it deepens alignment and provides LPs with enhanced access and lower fees commensurate with their increased conviction. Please contact your relationship manager or email partners@mobleyhelms.com to discuss tier upgrades.

Co-investment rights allow LPs to invest additional capital directly alongside the fund in specific portfolio companies, typically at reduced or zero management fees and carry. Strategic Partners receive priority allocation for co-investment opportunities, while Founding Partners receive guaranteed allocation with board observer rights. Co-investments allow LPs to increase their exposure to high-conviction deals without the blended fee drag of the main fund, significantly enhancing net returns for partners who actively participate.

Our funds operate on a standard 7-year fund life with two optional 1-year extension periods, subject to LP Advisory Committee approval. Capital is called as investment opportunities arise during the first 3-4 year investment period, and distributions are made as portfolio companies reach liquidity events. Secondary transfers are permitted with GP consent and ROFR provisions. The structure is designed to align capital deployment timelines with value creation cycles in growth-stage companies.