How are Rolling Fund distributions allocated to LPs, including rollover capital?

In general, when a Rolling Fund distributes portfolio company proceeds to LPs, that capital will be split pro rata to an LP's capital contributions plus their rollover contributions plus any notional increases in capital contributions for management fee waivers, minus any carry.


For example, suppose there are are two LPs in a quarterly fund, each with $100,000 in capital contributions, but one LP has an additional $50,000 in rollover contributions that rolled over from the previous quarterly fund. The LP with the rollover contributions will receive 60% of the allocation and the other will receive 40%. Then, carry will be paid out as appropriate from each LP's allocations.


Please note that this is a simplified and general example used to illustrate the impact of rollover contributions. Distribution allocations can be more complex if the Rolling Fund includes structures like cashless contributions. Refer to the LPA of the Rolling Fund you've invested in for a more complete explanation of the specific mechanics of that fund.


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