4 ms·

Does the fund only makes returns on liquidity events?

• foobarqux 11y ago
  I believe carry is only paid when capital is returned to investors (anything else doesn't make sense). Besides a (portfolio company) liquidity event I think the only other typical time capital is returned is possibly at the maturation of the fund. I guess in theory you might have a portfolio company paying dividends or other unusual situations, I don't know how those are handled.
  • cdibona 11y ago
    Sometimes there are cash distributions before the fund closes. I've seen these after big exits, but they usually come later in the fund.
    • foobarqux 11y ago
      Maybe I wasn't clear: Cash is returned on liquidity events, potentially at maturity (but maybe the fund rolls over positions or delivers stock) and maybe some other rare cases.