When Structuring a FUND You DONT Want Investors Doing This…

You don’t want to have a situation where at any given time an investor can come in and just, you know, ask to have their money back and withdraw. You want to create what we call withdrawal windows. And so once you figure out what the minimum amount of time you want the investor to be in, then after that you want to create a window. You know, one or two months in that calendar year, let’s say, you know, between August 1st and September 31st, is when the investor has the opportunity to provide you notice with their intent to withdraw. That way you’re only dealing with the withdrawal windows once a year. And not only will your bookkeeper like you a lot more, it’s going to be a lot easier to manage the investors coming in and out, not to mention not having to close the books every month or every week or every day if you’re just letting people come in and out.

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