There are many variations, but a standard process from exit to distribution of proceeds looks like this:
- 1. Acquisition agreements are signed by the acquirer and portfolio co
- 2. The acquisition closes
- 3. The Fund/SPV submits a letter of transmittal to receive proceeds from a paying agent
- 4. The paying agent delivers $ proceeds to the Fund/SPV
- 5. The Fund/SPV prepares a distribution to LP's and we share with you as the fund lead for review
- 6. The Fund/SPV executes distribution to investor accounts on AngelList
- 7. Investors withdraw proceeds to their personal bank accounts
The timing for the first two steps varies broadly. In some cases, it takes many months for a deal to close after signing. Some deals sign but never close at all.
Once a deal has closed it usually takes several weeks to complete the remaining steps to obtain proceeds and distribute them to LPs.
What happens if one of my portfolio companies IPO's or receives public company stock in an acquisition?
A portfolio company exited but I haven’t received the exit proceeds in my investment account. Why?