A disbursement is a distribution of assets in connection with a portfolio company event, most commonly an exit or liquidation event. Distributable assets are disbursed pro-rata to investors based on their ownership percentage in the fund, after any applicable carry or fees. Disbursements may be treated as a profit or a loss depending on the value of the initial investment. The taxable nature of any disbursement will be reflected on the year's K-1.

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