Exits and Liquidity
Distributions, secondaries, IPOs, acquisitions, and winding a deal down.
Articles from the Syndicately blog on this topic.
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How to Dissolve an SPV: The Wind-Down Checklist
Read article: How to Dissolve an SPV: The Wind-Down ChecklistDissolving an SPV means finishing the final distribution, filing state paperwork, and closing the books, in that order, to avoid stray fees later.
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Selling an SPV Interest on the Secondary Market
Read article: Selling an SPV Interest on the Secondary MarketSelling an SPV interest early means clearing the operating agreement’s transfer restrictions and finding a buyer who qualifies under a resale exemption.
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Risks of Investing Through an SPV
Read article: Risks of Investing Through an SPVSPV investing adds illiquidity, concentration, and fee risk on top of the underlying company’s own risk. Here is what to weigh before committing capital.
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How SPV Investors Get Paid After an Acquisition: Escrow and Earnouts
Read article: How SPV Investors Get Paid After an Acquisition: Escrow and EarnoutsWhen a portfolio company is acquired, SPV investors often get paid in stages: cash at closing, then an escrow release, then a possible earnout…
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Continuation Vehicles and GP-Led Secondaries Explained
Read article: Continuation Vehicles and GP-Led Secondaries ExplainedA continuation vehicle lets a GP hold a strong asset longer while giving existing LPs the choice to cash out or roll into the…
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In-Kind Distributions of Shares: How the Tax Rules Work
Read article: In-Kind Distributions of Shares: How the Tax Rules WorkIn-kind distributions transfer actual shares to SPV investors instead of cash. Here is when that transfer is tax free and when it creates taxable…
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SPV Distributions After an IPO: Lockups and Payout Choices
Read article: SPV Distributions After an IPO: Lockups and Payout ChoicesWhen a portfolio company goes public, the SPV faces a lockup period, then a choice between distributing shares in kind or selling them and…
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GP Clawback Provisions: How the Repayment Obligation Works
Read article: GP Clawback Provisions: How the Repayment Obligation WorksA GP clawback requires general partners to return carried interest they were paid too early. Here is how the obligation is triggered, escrowed, and…
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Pre-IPO SPV Structure: A Checklist Before You Invest
Read article: Pre-IPO SPV Structure: A Checklist Before You InvestWhat to confirm before investing in a pre-IPO SPV structure: company consent, transfer restrictions, IPO lockups, Rule 144 holding periods, and how distributions work.
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The Worthless Stock Deduction for SPV Investors
Read article: The Worthless Stock Deduction for SPV InvestorsHow the worthless stock deduction works when a portfolio company fails, when part of the loss can be an ordinary loss under Section 1244,…