Raising and closing
Equalisation
The adjustment that puts later investors on the same footing as those who joined at the first close.
Investors who join at a later close pay their share of fees back to the start plus interest, so that everyone shares the fund's economics evenly. The payments go to the earlier investors and the fund.
Why it matters when you raise
It removes any reason for LPs to rush in, so clear terms help you close in stages.
Related terms