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Treasury management Q - do we put the money in short term gic or high interest account something like that until it is deployed? (whether money's not being deployed fast enough or whether someone wants to put the full amount upfront) Quick thoughts on that, who’s credited the interest ? Gp or LP - i know there are 3-5 entities created - thanks!

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Community Member
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Nov 13, 2023
1 answer
Accepted Answer
Nov 13, 2023
  • Standard practice is to keep money in the fund account and deploy quickly to invest into companies. 
  • Investment instruments are not covered by the FDIC nor the CDIC.
  • First time fund managers for Fund I or Fund II should not have consistent material funding amounts sitting idle in their accounts. Fund III and Fund IV are more aligned with a consideration for a "Sweep Repo" as this mechanism will require material cash minimums to maintain to actually benefit.  

Deploying idle investment capital from LPs into investment instruments is NOT standard, so we don't recommend doing this until Fund III or Fund IV is being managed.
@angela what about for management fees - with 2 & 20 model on a $5M fund there can be almost $1M in management fees sitting in an account after all the capital is called (we expect to take 1-3 years), what should the plan be for that money sitting there particularly looking at the impact of inflation in a 10 year time horizon. For any gains, who would the gains (or even loses) be attributed to should it not just sit in an account, even a high interest account I think would make sense minimally.
Community Member
Jan 18, 2024 4:03pm
You will not have $1m sitting in an account because you will be doing capital calls.
Jan 18, 2024 6:13pm
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