--- title: Mapping MFN Provisions Before a Latin American Roadshow description: Navigate the complexities of MFN provisions in Latin America to avoid costly missteps during fundraising. Ensure equal treatment for LPs with a strategic approach. --- [Skip to content](https://www.cardonalconsulting.com/publication/mapping-mfn-provisions-before-a-latin-american-roadshow#main-content) [![cardonal-logo-horizontal-stalactite](https://www.cardonalconsulting.com/hubfs/Brand/cardonal-logo-horizontal-stalactite.svg)](https://www.cardonalconsulting.com/en/home?hsLang=en) - [Home](https://www.cardonalconsulting.com/en/home?hsLang=en) - [Practice Areas](https://www.cardonalconsulting.com/en/practice-areas?hsLang=en) - [Fund Investment Advisory](https://www.cardonalconsulting.com/en/fund-investment-advisory?hsLang=en) - [Side Letter Negotiation](https://www.cardonalconsulting.com/en/side-letter-negotiation?hsLang=en) - [Regulatory & Compliance](https://www.cardonalconsulting.com/en/regulatory-compliance?hsLang=en) - [Tax Advisory](https://www.cardonalconsulting.com/en/tax-advisory?hsLang=en) - [Fund & Vehicle Structuring](https://www.cardonalconsulting.com/en/fund-vehicle-structuring?hsLang=en) - [Subscription & Onboarding](https://www.cardonalconsulting.com/en/subscription-onboarding?hsLang=en) - [Team](https://www.cardonalconsulting.com/en/team?hsLang=en) - [Publications](https://www.cardonalconsulting.com/publication/?hsLang=en) - [Get in Touch](https://www.cardonalconsulting.com/en/contact-us?hsLang=en) - [EN](https://www.cardonalconsulting.com/publication/mapping-mfn-provisions-before-a-latin-american-roadshow) / [ES](https://www.cardonalconsulting.com/es) Open menu [![cardonal-logo-horizontal-stalactite](https://www.cardonalconsulting.com/hubfs/Brand/cardonal-logo-horizontal-stalactite.svg)](https://www.cardonalconsulting.com/en/home?hsLang=en) Close menu [Home](https://www.cardonalconsulting.com/en/home?hsLang=en) Practice Areas [Fund Investment Advisory](https://www.cardonalconsulting.com/en/fund-investment-advisory?hsLang=en) [Side Letter Negotiation](https://www.cardonalconsulting.com/en/side-letter-negotiation?hsLang=en) [Regulatory & Compliance](https://www.cardonalconsulting.com/en/regulatory-compliance?hsLang=en) [Tax Advisory](https://www.cardonalconsulting.com/en/tax-advisory?hsLang=en) [Fund & Vehicle Structuring](https://www.cardonalconsulting.com/en/fund-vehicle-structuring?hsLang=en) [Subscription & Onboarding](https://www.cardonalconsulting.com/en/subscription-onboarding?hsLang=en) [Team](https://www.cardonalconsulting.com/en/team?hsLang=en) [Publications](https://www.cardonalconsulting.com/publication/?hsLang=en) [Get in Touch](https://www.cardonalconsulting.com/en/contact-us?hsLang=en) [EN](https://www.cardonalconsulting.com/publication/mapping-mfn-provisions-before-a-latin-american-roadshow) / [ES](https://www.cardonalconsulting.com/es) GPs / Fund managers EN / ES # Mapping MFN Provisions Before a Latin American Roadshow ![DUE DILIGENCE QUESTIONNAIRE 4.3](https://www.cardonalconsulting.com/hubfs/DUE%20DILIGENCE%20QUESTIONNAIRE%204.3.png) ### The Invisible Risk Most Favored Nation (MFN) risk is invisible until it suddenly halts your closing process. When a GP grants a specific provision to secure an allocation from a Latin American investor, they rarely do so in a vacuum. If they don’t know the exact implications of that concession for other LPs in the fund, they risk a cascading administrative and financial nightmare. ## What MFN Clauses Typically Cover MFN clauses ensure that LPs committing capital at similar thresholds receive equal treatment. This typically covers fee terms, expansive reporting rights, and priority access to co-investment vehicles. When an AFP in Chile demands a specific fee cap, granting it could automatically trigger that same fee cap for an insurer in New York. ## The Danger of an Uncentralized Registry During a roadshow, multiple conversations happen simultaneously across different time zones. Without a centralized, live registry of granted precedents, an Investor Relations (IR) professional might verbally agree to a reporting frequency that legal counsel knows violates existing MFN structures. Misalignment here kills trust instantly. ## Cascading Commitments An early concession designed to land a cornerstone LatAm LP can inadvertently trigger unplanned commitments fund-wide. If you grant a heavily customized ESG reporting structure to a Colombian family office, are you prepared to generate that exact same report for twenty other LPs who invoke their MFN rights? ## Building a Tracking Document The solution is not complex, but it requires discipline. Before a roadshow begins, GPs must build a practical, executable tracking document outlining exactly what has been granted, to whom, and at what commitment threshold. Every term must be categorized as standard, negotiable, or radioactive. ## IR and Counsel Coordination Finally, IR and legal must operate in lockstep. No term can be granted or even hinted at without checking the registry. When a LatAm LP makes a demand, the GP’s response should be instantly informed by the MFN map. In this article ## What Cardonal does in this context We help GPs build and maintain robust MFN precedent maps prior to fundraising in Latin America, ensuring you don’t make promises you can’t afford to keep. COPY PENDING — website variant of the closing line. The article as written ends with a direct-message ask, which was drafted for LinkedIn. 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