For those of you who have the ability to co-invest in your funds, where are you saving your capital commitment? I assume most aren’t saving 100% of your commitment in a bank checking account - are you saving your commitment in something like a high yield savings account? And do you maybe have <70% or so of your commitment saved in the account, and contribute more cash into that account as your capital gets called? Curious what’s the best and safest way to maximize return and personal liquidity here
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Firstly, you may already have a good handle on the quarterly draw down profile but suggest you incorporate the following:
Managing your cash, depending on how big a commitment you made relative to your post tax salary. If things look dicey on the markets and you haven't stretched yourself too much then you can let the cash/savings buffer build to make sure you don't default on a capital call.
Keep mine invested in a brokerage account and maintain access to portfolio margin to help me manage cash flow. I won't commit a large enough share of my investable assets that the risk of a correction concerns me - if we had to draw 100% at once I wouldn't go above 20% levered, so I feel secure enough that even a sizable drop would be ok, and the most likely outcome is that I'll have another bonus or two in my pocket by the time it's deployed so that I inherently delever over time
What trading platform do you use?
Interactive Brokers - they have by far the cheapest margin. Honestly it actually isn’t my favorite platform, but if I’m using it for cash flow management the pricing can’t be beat
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