The deployment period is a critical phase for General Partners (GPs) in managing a fund’s investments. This period specifies the timeline within which all investments must be made.
Understanding the deployment period deadline
The deployment deadline is the date by which the GP must make all of their fund’s investments. This deadline is usually outlined in the fund’s Limited Partnership Agreement (LPA) and is typically calculated as follows:
- Initial Closing Date + Investment Period (expressed in months) + Extension Period (if any, also in months).
The LPA will provide specific details about the fund's investment period and any possible extensions.
How to find the deployment deadline
To determine the deployment deadline for a fund:
- Open the fund’s LPA and locate the "Investment Period Expiration" date. This is typically expressed as a number of months following the initial closing date.
- Calculate the deployment deadline by adding the investment period to the initial closing date. If there is an extension period, add that as well.
For example, if the initial closing date was January 1, 2024, and the investment period is 36 months with a 12-month extension, the deployment deadline will be calculated as:
- Initial closing date: January 1, 2024
- Add 36 months for the investment period: January 1, 2027
- Add the 12-month extension: January 1, 2028
Extending the Deployment Period
If necessary, the GP has the option to amend the LPA to extend the investment period. This may be done if the fund requires more time to make investments. Please see more about the LPA amendment process here.
Please be sure to consult the specific details in the Fund’s LPA for guidance and reach out to your Account Manager with any questions.