I was curious: if you raise your first fund, say $10 million, when do you actually collect the capital? Do you collect it in tranches, for example $1 million per year, or only when you make specific investments? The latter seems inefficient.
What happens if an LP does not fund their commitment? It seems like bad business to sue an LP, regardless of the situation.
In addition, if you have not yet deployed the capital, where do you hold it? Do you keep it in cash equivalents or short-term bonds while waiting to invest?
u/Genzinvestor16180339 — 10 days ago