There are many variations, but a standard process from exit to distribution of proceeds 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
- 7. Investors withdraw proceeds to their personal bank accounts
The timing for the first two steps varies broadly. In some cases, it takes many months for a deal to close after 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 LPs.