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Distribution
A payment from a fund to its investors, of realisation proceeds or income.
Distribution — A payment from a fund to its investors, of realisation proceeds or income.
Distributions are what actually get counted in DPI, the realised performance metric allocators trust most — a fund can report an impressive TVPI built mostly on unrealised value, but until a distribution actually happens, that value remains the manager's own assertion.
Frequently asked questions
What triggers a distribution?
A realization event — typically a sale, refinancing, or in some structures a dividend recapitalization — that generates cash the manager then distributes per the fund's waterfall.
Are all distributions taxed the same way?
No — tax treatment depends on the nature of the underlying gain and the investor's own situation, and is a matter for a tax professional rather than general guidance.
Nothing on this page is legal, tax, or investment advice. SeRuM is not a registered broker-dealer, not a placement agent, and not an investment adviser.
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