In practice
The right sits in the LPA and is usually separate from for-cause removal, which turns on a defined event such as fraud or material breach. Thresholds are typically measured by commitments, often excluding the GP’s and its affiliates' interests, and can differ for removal versus early termination. Terms often include a notice period, a delay after the first close, and a payout of fees or carry on removal.
An example
Round numbers, not a real fundSay a fund needs 75% of investors to vote for no-fault removal. If investors holding that share agree, the manager can be replaced with no finding of misconduct.
Why it matters
It is the strongest lever investors have over a manager, which is why managers push for a high threshold.
A definition, not advice; where usage varies the entry says so. Something wrong? Tell the desk.