Does anybody know what happens with committed, but non-invested LP capital in in two different periods: (i) a fund LP has committed capital to a fund, but that capital is not yet associated with a specific investment, and (ii) a fund LP has committed capital to fund, and the fund Sponsor has identified and signed up a specific investment which that LP's capital will be allocated to, but over a couple of years (whether it be for future capex, working capital, etc.).
Does this capital typically get invested in short term investments during the time gap between committing and investing? Is use of these funds during that time gap typically governed by an LPA, or do fund Sponsor's not get that specific w/r/t LP committed capital?
Hoping someone more involved with IR/capital raising can chime in.
Bump
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