A key person clause names the individuals whose continued involvement is essential to a fund and sets out what happens if one leaves or is incapacitated, typically a notice to investors and a right to redeem without penalty.
For an emerging manager the key person is usually the founder and portfolio manager. The clause gives investors an exit if the person they backed is no longer running the money. It is paired with a business-continuity plan setting out who steps in day to day.
Allocators check the clause and the plan together, and expect a deputy to be named even in a small team.
POD funds name the manager's key persons in their documents. [CONFIRM: whether POD's standard terms include a key-person clause.]
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