When a portfolio company has a liquidity event (IPO, acquisition, or other exit), here's how you receive your money:
The distribution process:
Exit event occurs: The company is acquired, goes public, or has another liquidity event
SPV receives proceeds: Cash (or publicly traded shares) flows to the SPV
Carry is deducted: The performance fee is subtracted from the profits
Distribution notice: You receive a notification with the amount, timeline, and wiring details
Funds are wired: Your share is wired to the bank account on file
Tax documentation: Final K-1 and distribution statements are uploaded to your Vault for the past year.
Timeline
Simple acquisitions (all-cash): 30–60 days from closing
Complex transactions (earn-outs, escrow): 60–90+ days
IPOs: 90–180+ days (due to lock-up periods)
Important
Keep your banking details up to date in your profile in 3rd party fund manager’s site
If the exit includes publicly traded shares, you may receive shares that need to be claimed via a transfer agent
There may be escrow holdbacks on acquisition proceeds