She Has Leverage

Fund economics

Recycling

Recycling is a provision in the limited partnership agreement (LPA) that lets a fund reinvest, or recall, specified proceeds or distributions for additional investments and expenses. The documents set the eligible amounts, timing, and limits, and recycling can affect when you receive and keep cash.

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Knowing the language helps you follow the conversation. Knowing what to ask is how you participate in it.

Understanding the terms is a first step. The Aligned Capital Program uses them to teach you how to evaluate a fund and prepare the questions to ask its manager.

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