Negotiating. Haggling. Wrangling. Bargaining.

Whatever you call it, LPs and GPs spend an awful lot of time revising and tweaking the investment terms for funds that come wrapped in a lawyer-approved offering document. While managers would like to present these documents as a fait accompli, in reality, nearly every term listed in the document can be — and often is — negotiable.

Fees are the most obvious terms negotiated, but other conditions also come in for their fair share of discussion. Items such as investment minimums, redemption rights, transparency, key-man provisions and access to the portfolio manager are just a few of the areas LPs look to shade in their favor. Not all managers are willing to negotiate, however. Some will negotiate with lead investors but not others. Some will negotiate fees but not other items. Some will negotiate other items but not fees. In the end, it is up to the investor to decide if the terms as presented are acceptable, or if it is