SolutionsPrivate Funds
THE FUND MANDATE
A private fund portfolio implements a stated strategy through the authority granted in its governing and offering documents. The manager must pursue the investment objective within applicable limits on assets, concentration, liquidity, leverage, and risk.
Those responsibilities can be viewed through two capital functions: capital retained for fund-level obligations and capital deployed through the strategy portfolio.
The governing documents, offering materials, side letters, delegated authority, and approval process establish which investments the fund may hold and under what conditions. Those constraints define the eligible investment universe before portfolio role or manager selection.
Actual reserve and portfolio structure remains subject to the allocating fund’s governing documents, strategy, and manager implementation.
Capital retained for operating expenses, investor liquidity where applicable, unfunded commitments, collateral, and other foreseeable obligations reduces reliance on selling long-duration positions at unfavorable times.
Capital available for investment can be deployed across exposures intended to advance the fund’s stated objective within its risk budget, concentration limits, and liquidity terms.
The manager and advisers assess mandate authority, fund-level obligations, liquidity, time horizon, risk budget, and capacity for loss. Exposure overlap, concentration, eligibility, ownership, tax, accounting, and reporting requirements shape the final review.
Where permitted and approved, a digital asset allocation provides specialist exposure to open financial networks and programmable financial infrastructure within the fund’s strategy portfolio.
Six equal slices identify portfolio categories and correspond to the color-coded key. The outlined digital asset sleeve is one component of the strategy portfolio.
Illustrative portfolio architecture. Equal slices identify categories and do not represent current or target weights. Actual permitted investments depend on the allocating fund’s mandate. No allocation recommendation is presented.
PRIVATE FUND CHALLENGES / FUND SOLUTION
What the manager must evaluate
How Marietta DeFi Fund LP can help
Governing documents, offering materials, side letters, delegated authority, and the subscribing vehicle’s eligibility must support the allocation.
Offering documents, strategy materials, Fund terms, risk disclosures, and subscription materials support the manager’s legal, compliance, and approval process.
Existing positions may create overlapping asset, protocol, market, or liquidity risks that change the allocation’s role within the portfolio.
Fund materials describe the strategy, portfolio-construction framework, and risk-management process for comparison with existing exposures and the allocating fund’s risk budget.
A long-duration allocation must align with the allocating fund’s investor-liquidity obligations, reserves, unfunded commitments, and planned life.
The offering documents define the Fund’s holding period, redemption terms, fees, and other liquidity constraints for comparison with fund-level obligations.
Reviewing a digital asset manager requires attention to custody, execution, onchain operations, service providers, valuation, controls, administration, and reporting.
Fund materials describe custody, service providers, valuation, administration, and reporting. TPS manages research, portfolio construction, risk monitoring, and onchain implementation through one fund interest.