Why does my fund need two entities?

Private funds on Avestor are structured with 2 limited liability companies:

1. Fund LLC - this is a manager-member structure where the manager is active, and investors are passively investing in the fund. The structure is
   generally, set up where the manager is making the decisions.

2. Fund Manager LLC - this is the entity that is managing the fund. The LLC consists of the management team that is managing the fund. The structure
   is generally set up as a member managed LLC where decisions are based on equity ownership.

The structure provides the fund management team legal protections. By being inside the Fund Manager LLC, managers personal assets are better protected in the event of litigation. Only the assets owned by the Fund Manager LLC are at risk.

​Note: Avestor does not provide legal advice. Please contact your securities attorney for your specific situation.