LPs receive distributions from the specific quarterly funds they contributed to, if there is a liquidity event in one of the fund’s underlying portfolio company positions. An LP does not have any interest in investments made by funds formed before their subscription was accepted or after it was canceled or rejected.
As a fund exits the investments made with your contributions, your initial investment will be returned first. If applicable, the lead will then receive carried interest on any profits beyond your original capital.
Funds that have not exited all investments by the end of their lifespan will generally be liquidated, subject to the terms of the applicable fund documents.