All Questions

All LPs must be on the same capital call schedule. If they are not, that poses major fiduciary and ethics related challenges. In the event that an LP pre-funds their entire position, their money would get accepted into an escrow bank acc...

All LPs must be on the same capital call schedule. If they are not, that poses major fiduciary and ethics related challenges. In the event that an LP pre-funds their entire position, their money would get accepted into an escrow bank account and the fund would call the same % as all other LPs on the escrow account.

No it does not. Each VC fund adopts a valuation policy and the hub accounting system reflects markups and markdowns based on this document. The vast majority of VC valuation policies markup an investment if there is a new priced round of...

No it does not. Each VC fund adopts a valuation policy and the hub accounting system reflects markups and markdowns based on this document. The vast majority of VC valuation policies markup an investment if there is a new priced round of financings. Otherwise they keep the investment at cost or they write it off. 

Upon receiving the required agreements and documentation for a valuation update, these are reviewed by fund accounting and sometimes fund operations before updating the system (applied per the fund's valuation policy). 

Upon receiving the required agreements and documentation for a valuation update, these are reviewed by fund accounting and sometimes fund operations before updating the system (applied per the fund's valuation policy). 

If an investor fails to meet their capital call obligations, the consequences are governed by the Limited Partner Agreement (LPA). Typically, there are strict penalties, such as interest on unpaid amounts, forfeiture of the investor's in...

If an investor fails to meet their capital call obligations, the consequences are governed by the Limited Partner Agreement (LPA). Typically, there are strict penalties, such as interest on unpaid amounts, forfeiture of the investor's interest, or selling the defaulting partner's interest at a discount. The general partner has discretion on handling defaults, which may include leniency or pursuing legal remedies. Each fund's LPA will detail specific actions and penalties.