Distributions

In the context of private markets and investment funds, distributions are payments that a fund makes to its investors. The distributions usually come from the profits generated by the fund. These profits can come from various sources, depending on the fund's investment strategy. Realised gains are the main source of distributions for funds that focus on capital appreciation, such as venture capital and private equity funds. Distributions may also result from interest income and dividends if the fund invests in companies or other assets that generate regular income. In some cases, portions of investors' capital contributions may also be distributed, either when the fund is liquidated or when excess cash is available. The exact timing and amount of distributions will depend on various factors, including the performance of the fund and the terms of the partnership agreement.