What Happens When a Fund Manager Steps Down or Becomes Inactive?

In most funds, there are multiple managers to ensure continuity. If one of the fund managers passes away or is unable to continue performing their duties, the remaining manager(s) will take over the responsibilities of managing the fund.

The fund’s operating agreement includes a provision for a “Liquidating Agent,” which can either be a trustee or a designated liquidating agent. While the Manager has the authority to assign a Liquidating Agent, if the Manager is unable to do so, the agreement allows Members who hold a majority share of the fund’s assets to designate and authorize a Liquidating Agent. This agent would then oversee the liquidation process of the fund.

For further details, please refer to the section titled “Dissolution of Company” in the fund’s operating agreement.