What happens to uninvested capital at the end of the quarter?

What happens to uninvested capital at the end of the quarter?

If a fund does not deploy all of its capital in one quarter, the balance will generally be rolled automatically into the next quarter’s fund as additional capital contributions from the participating LPs. The rolled-over capital is not double-charged management or platform fees.

By default, an LP's portion of uninvested capital will roll into the next quarterly fund unless:

  • An LP has cancelled their subscription and the fund has more than 90 LPs, or
  • An LP has cancelled their subscription and their roll-over contribution would be less than 10% of their subscription amount

Example:

  • An LP subscribes at $25K/qtr for four quarters. The LP stops their subscription in Q5. The GP only invested $50K (inclusive of fees and expenses) of the $100K from that LP in the first four quarters
  • If the fund has more than 90 LPs:
    • The LP’s uninvested $50K would be returned at the start of Q5. This helps keep funds below investor limits
  • If the fund has less than 90 LPs:
    • The LP’s uninvested $50K would be contributed into the Q5 fund. This helps maximize investable capital

The fund manager can override this default policy for any and all LPs upon request.

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