Can I distribute shares of a portfolio company to LP's?

Private Shares

Except in very exceptional cases, shares in private portfolio companies contain restrictions on transfer and cannot be distributed to LP's.

Publicly Traded Shares

Publicly traded shares can often be distributed to LP's. Distributing publicly traded shares "in-kind" allows individual investors to make their own decision for when and how to sell their allocation of shares. 

In-kind share distributions usually occur after a portfolio company goes public or receives public company securities as part of an acquisition. 


See Also:

What happens if one of my Portfolio Companies IPO's or receives public company stock in an acquisition?



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