When will LP's receive proceeds from an exit?

A typical exit -> distribution process looks like this:

  • 1. Acquisition agreements are signed by the acquirer and portfolio co
  • 2. The acquisition closes
  • 3. The Fund/SPV submits a letter of transmittal to receive proceeds from a paying agent
  • 4. The paying agent delivers $ proceeds to the Fund/SPV
  • 5. The Fund/SPV prepares a distribution to LP's and we share with you as the fund lead for review
  • 6. The Fund/SPV executes distribution to investor accounts on AngelList

The timing for the first two steps varies broadly. In some cases, it takes many months for a deal to close post-signing. Some deals sign but never close at all.

Once a deal has closed it usually takes several weeks to complete the remaining steps to obtain proceeds and distribute them to LP's.

 

See Also: 

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

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