Case | HBS Case Collection | March 2013 (Revised July 2014)

Bay Partners (A)

by Josh Lerner and Lauren Barley


In April 2010, Salil Deshpande has recently resigned from Palo Alto, California-based Bay Partners (Bay) where he had been a general partner. Although Deshpande had built a successful track record at the venture firm, he resigned with two other Bay general partners as disagreement about internal economics and governance continued among the Bay's six-member management team. This triggered the "key man" clause in the limited partnership agreement of Bay's most recent fund, Bay XI. The case considers the options that Deshpande and the Bay XI limited partners face as the firm and fund's futures are thrown into doubt.

Keywords: Risk and Uncertainty; Risk Management; Venture Capital; Conflict Management; Partners and Partnerships; Resignation and Termination; Policy; Management Teams; Financial Services Industry; California;


Lerner, Josh, and Lauren Barley. "Bay Partners (A)." Harvard Business School Case 213-102, March 2013. (Revised July 2014.)