The Dual-Entity Structure
Separate the fund from studio ops. The fund hits conventional management-fee math; the studio gets a real P&L; the founder equity story stays clean.
Separate the venture fund from the studio operations. The fund makes investments and earns carry on exits. The studio operates as its own entity, funded by shared-service revenue from portfolio companies, strategic-corporate deals, or a separate operational LP class.
The structure does three things at once. It lets the fund hit conventional management-fee economics, so traditional LPs aren't scared off. It gives the studio a real P&L instead of an overhead line. And it cleans up the equity story for portfolio founders, who can clearly see what they're getting from the fund versus what they're getting from the studio.
The cost is structural complexity. The benefit is a studio that survives past year three without compromising the build quality that justifies the model in the first place.