Hacker News Reader

I believe carry is only paid when capital is returned to investors (anything else doesn't make sense). Besides a (portfolio company) liquidity event I think the only other typical time capital is returned is possibly at the maturation of the fund. I guess in theory you might have a portfolio company paying dividends or other unusual situations, I don't know how those are handled.

View on HN

Sometimes there are cash distributions before the fund closes. I've seen these after big exits, but they usually come later in the fund.

Maybe I wasn't clear: Cash is returned on liquidity events, potentially at maturity (but maybe the fund rolls over positions or delivers stock) and maybe some other rare cases.

Reply on news.ycombinator.com