The key person clause is one of the most important instruments of governance and discipline for investment funds. At its core, the key person provision helps to ensure that individuals who are identified as being critical to the prospects of the fund are focused on the investments of the fund, failing which the fund will usually be precluded from making further investments

In this piece, we introduce the broad elements of the key person provision and closely examine some of the key aspects to keep in mind when drafting and negotiating key person provisions for private funds