4 ms·
they don't call indefinitely, the committed amount is called over a 2-3 year period. they do this because it lets them keep the IRR low (since uncalled capital
by joshu 5y ago
they don't call indefinitely, the committed amount is called over a 2-3 year period. they do this because it lets them keep the IRR low (since uncalled capital isn't invested and thus not counted)
LPs generally do not want to have them take money and invest it into one thing and then another thing. they want to choose specifically what things they allocate to and nothing else.
accounting is much more complicated than closed end fund.
so essentially the way the world works means the things you are hoping for will never happen.