Although a portfolio vehicle has made its exit, why haven’t I still received the exit proceeds in my investment account?

 

The exit of an asset or a vehicle may be announced months before it is formally closed depending on the transaction. After it is closed it can require several weeks to process the paperwork of the final exit, receive wires, and prepare the fund distribution. 

 

Therefore, it may require some time before the proceeds are distributed and are reflected in your investment account.

 

Will I receive stock distributions when a portfolio asset or vehicle goes public?

The decision to distribute shares and cash proceeds or to liquidate at the Fund/SPV level is made on a case-by-case basis. Some of the factors that decide the distribution of shares or cash proceeds include:

 

  • The fund sponsor’s recommendation of the most appropriate liquidation strategy for the fund
  • The tax or other economic value to fund Investors that enable them to receive shares in kind
  • The value and quantity of the shares that will be distributed
  • The practicality and feasibility of an in-kind distribution which is based on the exchange and listing type

 

When a fund or SPV goes public and offers to distribute shares in kind, you will be notified at your email address that is associated with your investor account for the fund or SPV investment.

Will I receive tokens from an asset’s distribution of the same?

The decision to distribute tokens or to liquidate at the Fund/SPV level is made on a case-by-case basis. Some of the factors that decide the distribution of tokens include:

 

  • The value and quantity of the tokens in question
  • The costs of specific tokens and the benefits of their in-kind distribution
  • Availability of adequate infrastructure and security for the distribution of tokens in-kind

 

When a fund or SPV goes public and offers to distribute shares in kind, you will be notified at your email address that is associated with your investor account for the fund or SPV investment.

Will I be notified when I receive a distribution?

Yes. You will be notified of the distribution via an email that will be sent to your email address that is associated with your investment account.

 

However, to receive shares you must make an affirmative election and also provide adequate information for a brokerage account where you can receive the shares in the name of your investment account.

This help page and the information contained herein is provided for informational and discussion purposes only and is not intended to be a recommendation for any investment or other advice of any kind, and shall not constitute or imply any offer to purchase, sell or hold any security or to enter into or engage in any type of transaction.

Investing in venture capital funds is inherently risky and illiquid. It involves a high degree of risk and is suitable only for sophisticated and qualified investors.