What happens to uninvested capital at the end of the quarter?
If a fund does not deploy all of its capital in one quarter, the balance will generally be rolled automatically into the next quarter’s fund as additional capital contributions from the participating LPs. The rolled-over capital is not double-charged management or platform fees.
By default, an LP's portion of uninvested capital will roll into the next quarterly fund unless:
- An LP has canceled their subscription and the fund has more than 90 LPs, or
- An LP has canceled their subscription and their roll-over contribution would be less than 10% of their subscription amount
Example:
- An LP subscribes at $25k/qtr for four quarters. The LP stops their subscription in Q5. The GP only invested $50k (inclusive of fees and expenses) of the $100k from that LP in the first four quarters
- If the rollover amount is greater or equal to 10% of the subscription amount (≥ $2.5k):
- If LP is subscribed to the non-QP Fund
- If the investor count of the non-QP fund is within 10 of its vehicle limit (e.g. 90 or more LPs):
- The LP’s uninvested $50k would be returned at the start of Q5. This helps keep funds below investor limits
- Else the non-QP vehicle has 89 or fewer active subscribers
- The LP’s uninvested $50k would be contributed to the Q5 fund. This helps maximize investable capital
- If the investor count of the non-QP fund is within 10 of its vehicle limit (e.g. 90 or more LPs):
- If LP is subscribed to the QP Fund
- If the investor count of the QP fund is within 10 of its vehicle limit (e.g. 1990 or more LPs):
- The LP’s uninvested $50k would be returned at the start of Q5. This helps keep funds below investor limits
- Else the QP vehicle has 1889 or fewer active subscribers
- The LP’s uninvested $50k would be contributed to the Q5 fund. This helps maximize investable capital
- If the investor count of the QP fund is within 10 of its vehicle limit (e.g. 1990 or more LPs):
- If LP is subscribed to the non-QP Fund
- If the rollover amount is less than 10% of the subscription amount (< $2.5k)
- The LP’s uninvested $50k would be returned at the start of Q5. This helps keep funds below investor limits
The fund manager can override this default policy for any and all LPs upon request.