Professional Documents
Culture Documents
are pooled together and drawn down/called as required by the Fund Manager to invest in companies
and to pay management fees & operating expenses incurred by the Fund".
Cycle
The General Partner will detail their minimum target of commitments; on average it
takes 14 months of fundraising to reach this minimum target.
3. Closing the Fund
a. First or Initial Close – once the investors have agreed to join (opening of bank
accounts)
b. Subsequent Close – each time investors are admitted to the fund
c. No further investors can be admitted to the Fund after the Final Close.
4. Drawdowns/Capital Calls
- Investments are one reason that the Fund will require money
5. Make Investments
- Fund Manager will use the money raised to buy a range of investments over the life of the
Manage Investments
- Fund Manager may have representation on the Board and if so will work closely with the
MATURITY STAGE (period where the exit strategies for each investment will be decided,
distributions of any proceeds made to investors and the fund being wound-up)
6. Divestment
- Before the end of fund term, all of the investments purchased must be disposed of.
- The most common divestment, or exit strategies for a Fund Portfolio would be:
a. Trade Sales - the Fund is sold to another PE Fund or to Private Investors.
7. Distribution
- The return of capital from the Fund to investors. Funds may have periodic income from
investment dividends and interest, but these amounts are usually immaterial in comparison
8. Dissolution
- Fund's term, it will either be wound up (dissolved) or extended for up to another 2 years
depending on its performance.
- The dissolution process involves liquidating all assets of the Fund, and distributing any
proceeds of these liquidations in accordance with the LPA.